Pakistan’s car sales declines by 6% in October

Pakistan’s car sales declines by 6% in October

KARACHI: Pakistan car sales have come down 6 per cent Month on Month (MoM) in October 2021, reaching 21,000 units, as reported by Pakistan Automotive Manufacturers Association (PAMA) on Thursday.

Pakistan car sales (including KIA) clocked in at 24,000 units in October 2021, down 4 per cent MoM.

Analysts at Topline Securities said that Pak Suzuki (PSMC) had stopped booking of certain variants of Cultus and Alto models due to supply side constraints which had an impact on its overall sales during the month.

Honda Car (HCAR) also witnessed lower MoM sales due to rising competition and anticipated launch of KIA Stonic.

Sales of HCAR and PSMC were down 27 per cent and 8 per cent MoM, respectively. Indus Motors (INDU) continued to post strong growth growing by 10 per cent MoM. Hyundai Nishat also recorded 10 per cent MoM increase in car sales.

With stringent regulation on car financing by SBP and rising interest rates, car sales can slow down further going forward.

On YoY basis, car sales improved by 49 per cent YoY driven by PSMC and INDU sales which were up 69 per cent and 26 per cent, respectively. In 4MFY22, car sales increased by 75 per cent YoY to 90k units primarily due to low base and macro recovery.

Pakistan bike sales as reported by PAMA were up 14 per cent MoM and 1 per cent YoY to 177k units in Oct 2021 where Atlas Honda (ATLH) recorded growth of 14 per cent MoM and 8 per cent YoY.

Pakistan tractor sales posted growth of 22 per cent MoM and 19 per cent YoY, reporting sales of 5k units during Oct 2021. Trucks & buses sales were down 5 per cent MoM and up 32 per cent YoY.

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