Pakistan’s car sales up monthly highest ahead price hike

Pakistan’s car sales up monthly highest ahead price hike

KARACHI: Pakistan’s car sales have increased by 96 per cent to 27,331 units in December 2021, which is the highest ever sale in a month, ahead of hike in prices proposed through mini-budget.

According to data released by Pakistan Auto Manufacturers Association (PAMA) on Tuesday, the total car sales grew to 27,331 units during December 2021 as compared with 13,956 units in the same month of the last year.

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Analysts at Arif Habib Limited said that auto sales figures for December 2021, portrayed an increase of 96 per cent year on year (YoY) and 46 per cent month on month (MOM) to 27,331 units.

“Despite shortage of semi-conductor chips, disruption in international supply chain and booking suspension of various automobiles, the massive growth in sales volumes remained intact mainly due to: improved purchasing power amid rapid economic recovery; and consumers interest in buying cars in anticipation of price hike as cars are soon expected to be slapped with increased regulatory duty (RD) and federal excise duty (FED).”

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In below 1,000 cc, volumes are significantly up by 211 per cent YoY owing to massive surge in sales of Alto. In 1300cc and above, total sales stood at 9,955 units, increasing by 106 per cent YoY due to impressive dispatches of Civic/City, Corolla and Yaris by 188 per cent, 77 per cent and 37 per cent YoY, respectively.

Pakistan Suzuki Motors Company (PSMC) has posted growth of 104 per cent YoY in December 2021.

In December 2021, total sales significantly increased by 104 per cent YoY to 15,503 units compared to 7,594 units in December 2020. The all time high monthly sales is mainly attributable to the announcement of price increase by the PSMC which eased cost and exchange rate pressure on it to some extent and thereby lead to resumption of suspended bookings of various models.

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Dissecting the numbers, Alto, Wagon R and Bolan were the major contributors to the overall growth as their sales volumes underwent a jump of 211 per cent, 205 per cent and 75 per cent YoY, respectively. An upward momentum in sales growth of 82 per cent was also observed on MoM basis.

The sales of Indus Motors (INDU) jumped by 55 per cent YoY in December 2021 due to robust demand of high end cars at the back of rapid economic recovery coupled with improved purchasing power.

During December 2021, the sales of Honda Cars witnessed growth in sales volume by 167 per cent and 56 per cent MoM to 4,708 units with Civic/city sales increased by 188 per cent YoY to 4,505 units. The jump in sales volumes is mainly attributable to shifting of cost pressure to end consumers through price hike and increased consumers interest in buying cars at the back of anticipation of price hike as cars are soon expected to be increase after approval of mini-budget.

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