Pakistan car sales drop in 1HFY23 amid halt in production

Pakistan car sales drop in 1HFY23 amid halt in production

KARACHI: Pakistan car sales have dropped by 38 per cent during first half of the current fiscal year 2022-2023 due to non-production days due to shortage of raw material because of import restrictions.

The car sales fell to 84,088 units during July – December 2022 as compared with 135,976 units in the same period of the last fiscal year, according to data released by Pakistan Auto Manufacturers Association (PAMA) on Wednesday.

READ MORE: Pakistan’s passenger car sales drop 39pc in 5MFY23

Analysts at Topline Securities attributed the decline to weak demand, high car prices, expensive auto financing, and low purchasing power of consumers.

Pakistan car sales (including sales of Non-PAMA members) clocked in at 18k units down 8 per cent MoM primarily due to (1) non availability of CKD parts amid LC issues which led to non production days, and (2) year-end phenomenon where consumers generally delay their purchases until the new year, the analysts added.

READ MORE: Pakistan car sales increase 21 pc in October 2022

Honda Car (HCAR) reported an increase of 5 per cent MoM to 2,079 units in December 2022 whereas Indus Motors (INDU) reported decline of 13 per cent MoM to 2,823 units in December 2022 due to non-production days.

Hyundai sales up 37 per cent MoM where Tuscon was up 67 per cent MoM and Elantra was up 41 per cent MoM. PSMC reported a decline of 8 per cent MoM to 11,342 units. 

READ MORE: Pakistan car sales plunge 50% in 1QFY23

Amongst Tractors, Millat Tractors (MTL) recorded decline of 55 per cent MoM to 501 units in December 2022 primarily due to plant closure. However, Al Ghazi Tractors (AGTL) recorded 4x MoM increase in sales to 514 units in December 2022. This takes total tractor industry sales to 11,513 units in 1HFY23 down 57 per cent YoY due to floods, plants shutdown, lower consumer buying power and higher prices.

READ MORE: Pakistan car sales plummet by 50% on import restriction

Pakistan bike sales were down 6 per cent MoM and 27 per cent YoY in December 2022. Atlas Honda (ATLH) recorded sales of 85K units, down 8 per cent MoM and 26 per cent YoY.

Trucks & Buses sales were down 16 per cent MoM and 15 per cent YoY to 286 units in December 2022. This takes 1HFY23 sales to 1,947 units in 1HFY23 down 36 per cent YoY primarily due to drop in transportation activity and slowdown in overall economy.