Car sales surge by 53% in nine months despite rupee fall

Car sales surge by 53% in nine months despite rupee fall

KARACHI: Sales of locally manufactured / assembled motor cars have registered 53 per cent growth during first nine months (July – March) 2021/2022 of the current fiscal year despite massive depreciation in rupee value.

According to data released by Pakistan Auto Manufacturers Association (PAMA), the sales of locally assembled cars increased to 205,469 units during the first nine months of the current fiscal year as compared with 134,718 units in the corresponding months of the last fiscal year.

READ MORE: Investigation into high car prices in Pakistan ordered

The sales of cars grew to 27,131 units in March 2022 as compared with 21,706 units in February 2022 and 20,813 units in March 2021, showing the increase of 25 per cent and 30 per cent, respectively.

Analysts at Arif Habib Limited said that despite the ongoing political turbulence and economic uncertainty, auto sales continued depicting a positive growth.

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They further said that despite the upward revision in car prices and rising inflation, car buyers’ interest remained alive, mainly on account of: anticipation of further price hike amid massive rupee devaluation and surge in cost of production, and; greater demand for locally assembled cars given increasing cost of imported CBUs on the back of higher freight costs and commodity prices (especially steel), substantial currency depreciation, and imposition of temporary loan ban on financing of imported CBUs.

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According to data, the sale of cars below 1000 CC surged by 83 per cent to 53,241 units during first nine months of the current fiscal year as compared with 29,038 units in the same months of the last fiscal year.

The sales of cars with engine capacity up to 1000CC posted a growth of 65 per cent to 34,602 units during the period under review as compared with 20,975 units in the same period of the last fiscal year.

Meanwhile, sales of 1300CC and above recorded an increase of 35 per cent to 75,207 units as compared with 55,733 units in the corresponding period of the last fiscal year.

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The sales of Indus Motors increased by 33 per cent to 55,567 units during first nine months of the current fiscal year as compared with 42,670 units in the corresponding months of the last fiscal year.

The sales of Pak Suzuki posted 66 per cent growth to 109,419 units during July – March 2021/2022 as compared with 66,013 units in the same period of the last fiscal year.

Similarly, the sale of Honda Cars recorded 38 per cent to 30,010 units during first nine months of the current fiscal year as compared with 21,698 units in the same period of the last fiscal year.

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