In Karachi, car sales experienced a 30% year-on-year decline in September, primarily due to elevated prices and limited financing options, according to industry data released on Wednesday.
The Pakistan Automotive Manufacturers Association (PAMA) reported that its member companies sold 6,410 vehicles in September, a decrease from the 9,213 units sold in the corresponding month the previous year. Nonetheless, sales increased by 8% compared to August, when they were impacted by import-related challenges.
For the first quarter of the fiscal year 2023/24, passenger car sales dropped 44 percent to 16,021 units, compared with 28,571 units in the same period last year.
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Sales of 1,300cc and above cars sales were recorded at 2,939 units, down 38 percent compared with last year’s sales of 4,715 units. However, it increased by 27 percent against 2,310 units in August.
During this period, 1,000cc cars recorded sales of 691 units against 1,517 units during the same month last year. Below 1,000cc vehicles recorded a sale of 2,780 units, down 7 percent against 2,981 units of last year. This category of cars also recorded a month-on-month decline against 2,935 units in August.
The sale of buses and trucks decreased to 185 units in September 2023 from 378 units in September 2022. Sales increased on a month-on-month basis against 167 units in August.
The sale of jeeps and pick-ups decreased to 1,902 units from 2,075 units sold during the same period last year. This category also saw an increase on a month-on-month basis. Sales of tractors rose to 5,445 units from 2,149 units in September last year.
The sale of rickshaws and motorbikes increased to 107,084 units on September 23 against 99,581 units in the same period last year.
Analyst Sunny Kumar at Topline Securities said that car sales clocked in at around 10K units, up 9 percent month-on-month and down 23 percent year-on-year.
Kumar said the monthly increase in car sales was due to the easing of import issues for completely knocked down (CKD) kits, which are used for assembling cars locally.
“However, escalating car prices, expensive auto financing, and the low purchasing power of consumers are among the primary reasons for the decline in year-on-year sales,” he added.
Honda Atlas Car (HCAR) recorded the highest increase of 99 percent month-on-month, reaching 1,342 units in Sep-2023, primarily due to the low base of the previous month when the company sold only 674 units.
Pak Suzuki (PSMC) was the only one that recorded a decline of 1% month-on-month to 4,234 units in Sep-2023 led by an 8 percent month-on-month decline in sales of Alto. Other variants including Ravi, Bolan, and Cultus recorded an increase of 58 percent month-on-month, 38 percent month-on-month, and 9 percent month-on-month respectively. Swift and Wagon-R sales remain flat month-on-month at 506 and 359 Units in Sep-2023.
Hyundai sales remained up 5 percent month-on-month whereas Porter sales were up 48 percent month-on-month to 177 units in Sep-2023.
Indus Motors (INDU) sales are up 3 percent month-on-month led by an increase in sales of Fortuner and Hilux by 27 percent month-on-month.
Amongst Tractors, Al-Ghazi Tractors (AGTL), and Millat Tractors (MTL) recorded an increase of 50 percent month-on-month and 29 percent month-on-month respectively in Sep-2023. This takes total tractor industry sales in 1QFY24 to 12,090 units up 64 percent YoY due to the low base of last year amid floods.