Car sales jump up by 19 percent in July – November

Car sales jump up by 19 percent in July – November

KARACHI: The sales of locally manufactured cars have increased by 19 percent during first five months (July – November) of current fiscal year owing to lower interest rates and higher demand.

The car sales grew to 65,534 units in first five months of fiscal year 2020/2021 as compared with 54,950 units in the corresponding months of the last fiscal year, according to data released by Pakistan Auto Manufacturers Association (PAMA).

According to data the sales of Indus Motors grew by 87 percent to 22,138 units during the period under review as compared with 11,843 units in the same period of the last fiscal year.

The sale of Honda cars registered 67 percent growth to 11,902 units during July –November of the current fiscal year as compared with 7,141 units in the same period of the last fiscal year.

However, the sales of Pak Suzuki Motors fell by 16 percent to 30,342 units during first five months of the current fiscal year as compared with 35,966 units in the corresponding period of the last fiscal year.

The sale of new entrant Hyundai cars was 1,152 unit for the period under review.

The car sales increased by 48 percent in November 2020 on year on year (YoY) basis. The car sales in November 2020 were at 14,454 units as compared with 9,789 units in the same month of the last year. However, the growth is 63 percent YoY in November 2020 after including sales of Luky Motors Corporation (KIA, non member of PAMA).

Analysts at Topline Securities said that demand for cars to grow stronger owing to low interest rates environment and pickup in economic activity.