Car sales sharply increase by 114% on tax cuts

Car sales sharply increase by 114% on tax cuts

KARACHI: The car sales posted a sharp rise of 114 per cent in July 2021 owing to tax cuts announced in the Finance Act, 2021.

The car sales increased to 24,918 units in July 2021 as compared with 11,659 units in the same month of the last year.

Analysts at Topline Securities said that the sharp increase in car sales might be attributed to tax incentives announced through the Finance Act, 2021.

The analysts said that the sales was around 27K, including non-member Lucky Motor Corporation i.e. KIA.

As reported by Pakistan Automotive Manufacturers Association (PAMA), car sales have increased by 114 per cent YoY to 24,918 units where the volumetric increase was mostly led by Pak Suzuki Motor Company (PSMC) and Indus Motor (INDU).

To recall, the government had announced reliefs and tax-cuts in the federal budget which resulted in reduction in car prices across the board.

As a result, customers had held back there purchases till July 2021.

PSMC volumes are up by 197 per cent MoM to 15,181 units. INDU registered an increase of 48 per cent MoM to 6,715 units.

However, HCAR sales were on the lower side with a decline of 30 per cent MoM largely due to the anticipated roll out of new model of Honda City.

On the new-entrants front, Hyundai Nishat registered 4 per cent MoM increase to 627 units with the inclusion of its new model “Sonata”.

Lucky Motor Corporation sold around 1,600 to 1,800 units in July-2021, which are similar volumes to the prior month.