KARACHI: Pakistan’s domestic car sales have recorded a drop of 39 per cent in the first five months (July – November) of fiscal year 2022-2023.
According to latest date released by Pakistan Auto Manufacturers Association (PAMA), the sales of passenger cars fell to 55,144 units in the first five months of the current fiscal year as compared with 90,303 units in the corresponding period of the last fiscal year.
READ MORE: Pakistan car sales increase 21 pc in October 2022
The sales of cars with engine capacity of 1,000 cc recorded major decline of 68 per cent to 6,987 units in the first five months of the current fiscal year as compared with 21,873 units in the same period of the last fiscal year.
Similarly, the sales of cars with 1,300CC and above engine capacity recorded 36 per cent decline to 24,465 units during the period under review when compared with 40,036 units in the corresponding period of the last fiscal year.
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Meanwhile, the sales of cars below 1,000 CC recorded a decline of 20 per cent to 22,692 units during the first five months of the current fiscal year as compared with 28,394 units in the same period of the last fiscal year.
The sales of LCVs, vans and jeeps recorded a decline of 38 per cent to 11,314 units during the period of July – November 2022 when compared with 18,332 units in the corresponding period of the last fiscal year.
The car sales in the month of November 2022 recorded 39 per cent to 15,444 units when compared with 11,129 units in October 2022.
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Analysts at Arif Habib Limited attributed the recovery in sales volume on an MoM basis was mainly due to the fulfillment of the delivery of vehicles on the backlog of demand and consumers moving toward affordable vehicles resulting in PSMC sales climbing up by 74 per cent MoM.
They further attributed to streamlining production process by auto assemblers through improved inventory management processes and higher operating days.
However, further PKR volatility and increase in international commodity prices still remain a serious concern for the automobile sector.
They said 1,300cc segment and above showed a growth in sales by 22 per cent MoM. Given the sales of Civic and City went up by 10 per cent MoM. In addition, the sales of Corolla and Yaris portrayed a rise of 5 per cent MoM.
Alternatively, we observed a dip in 1,000cc segment sales by 2 per cent MoM, led by the rise in Wagon R sales whose sales went down by 7 per cent MoM to 718 units.
READ MORE: Pakistan car sales drop 59% in July 2022
Sales in the below 1000cc segment majorly contributed to the rise in sales 74 per cent MoM. The major contributor remained Alto which went up by 74 per cent MoM to 7,255 units.
Indus Motors sales went down by 4 per cent MoM, given sales of Fortuner and Hilux declined by 15 per cent MoM to 1,309 units.
Pakistan Suzuki sales depicted an increase of 55 per cent MoM as consumers switched towards affordable cars.
Honda Car sales surged by 38 per cent MoM, since the launch of HRV grabbed the attention of car enthusiasts and came into the limelight. With this, the overall BRV and HRV sales depicted a jump of 8.6x MoM.
During November 2022, the Tractors sales went down 34 per cent MoM, majorly contributed by AGTL, whose sales went down by 65 per cent MoM. In addition, MTL sales went down by 27 per cent MoM.
