Pakistan car sales plunge by 47 per cent year on year (YoY) in January 2023 due to high prices and expensive auto financing, analysts said on Monday.
Analysts at Topline Securities said that Pakistan car sales (including sales of Non-PAMA members) clocked in at ~11.5k units down 37 per cent MoM primarily led by Pak Suzuki (PSMC) due to non-availability of CKD parts amid LC issues which led to non-production days.
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On a YoY basis, weak demand dynamics was again evident from a 47 per cent YoY fall in industry sales in Jan-2023, also taking 7MFY23 decline to 39 per cent YoY.
This is primarily attributable to escalating car prices, expensive auto financing, and low purchasing power of consumers.
PSMC recorded decline of 74 per cent MoM and 67 per cent YoY to 2,946 units which is lowest sales since April-2020 where PSMC recorded zero sales due to COVID-19 related shutdown.
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Indus Motors (INDU) reported an increase of 26 per cent MoM to 3,570 units followed Honda Car (HCAR) sales of 30 per cent YoY to 2,704 units in Jan-2023.
Hyundai sales up 81 per cent MoM where Tuscon was up 69 per cent MoM to 620 units and Sonata was up 241 per cent MoMto 191 units in Jan-2023.
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Amongst Tractors, Millat Tractors (MTL) recorded jump of 4x MoM to 2,203 units followed by Al Ghazi Tractors (AGTL) recorded 2x MoM increase in sales to 1,203 units in January 2023 primarily easing of production issues. This takes total tractor industry sales to 14,919 units in 7MFY23 down 53 per cent YoY due to floods, plants shutdown, lower consumer buying power and higher prices.
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Pakistan bike sales were up 5 per cent MoM while down 29 per cent YoY in Jan-2023. Atlas Honda (ATLH) recorded sales of 90K units, up 6 per cent MoM while down 25 per cent YoY.
Trucks & Buses sales were up 64 per cent MoM while down 40 per cent YoY to 470 units in Jan-2023. This takes 7MFY23 sales to 2,417 units down 37 per cent YoY primarily due to drop in transportation activity and slow down in overall economy.
