KARACHI: Despite high car prices, Pakistan’s auto sector recorded a 98 percent increase in March sales to around 7,201 units as against 3,642 units sold in the previous month, raising hopes in the beleaguered auto sector. Kiran was born which has gained some momentum after several. month.
Car sales, including non-PAMA (Pakistan Automotive Manufacturers Association) sales, however, fell 68 per cent year-on-year to 22,799 units in March due to non-productive days and reduced purchasing power.
The month-on-month growth can be attributed to improved volumetric sales of Pak Suzuki Motor Company (PSMC) and Indus Motors, which posted 475% month-on-month and 6% month-on-month growth.
Additionally, Arif Habib Ltd said in its commentary that due to rising inflationary pressures, consumers shifted towards cheaper vehicles below 1000cc, which saw a growth of 423%.
There are still fears of a slowdown in the coming months as measures taken by the State Bank of Pakistan (SBP) to curb imports remain in place. Therefore, auto assemblers require prior permission to import completely knocked-down (CKD) units and raw materials resulting in production limitations.
According to data released by PAMA a day ago, along with buses and trucks, cars, jeeps, tractors, pickups and three-wheelers as well as two-wheelers saw a year-on-year decline in sales. went In March 2023.
In the first nine months of FY 2022-23, a total of 85,776 units were sold, which is 50 per cent lower than the 172,612 units sold during the same period in FY22.
During the period under review, sales of 1300cc and above cars were recorded at 2,913 units, which is 67% lower than the sales of 9,280 units in the same month last year.
In March 2023, 1,000cc cars recorded sales of only 964 units, (475 units of Suzuki Cults and 489 units of Suzuki Wagon RK) as against 2,410 units in the same month last year.
Breakdown of the data:
- The sub-1000cc vehicles recorded sales of 3,324 units, down 70 percent from last year’s 11,109 units.
- Suzuki’s new Alto sold 2,542 units in March 2023, compared to 9,814 units in March 2022.
- The number of buses and trucks decreased to 308 units in March as against 565 units in the same month last year.
- Sales of jeeps and pickups fell to 2,150 units as against 4,403 units sold in the same period last year.
- Sales of tractors declined to 2,984 units in March 2022 from 5,651 units.
- Sales of rickshaws and motorcycles also declined to 84,307 units in March from 151,010 units in the same period last year.
PSMC recorded a 475% month-on-month jump to 5,628 units mainly due to availability of CKD parts amid easing LC issues, while Indus Motors reported a 6% month-on-month increase to 1,912 units in March.
However, Honda Car ( HCAR ) sales fell 49% month-on-month to 835 units in March due to a 23-day plant shutdown due to CKD issues.
Other automakers record performance:
- Hyundai sales down 34% month-on-month
- Tuscon fell 46 percent month-on-month to 380 units.
- The Sonata was down 40 percent month-on-month to 118 units in the month under review.
Among tractors, Millat Tractors recorded a month-on-month growth of 3 percent at 2,669 units in March.
Al Ghazi tractors sales recorded a month-on-month drop of 57 percent to 315 units in the month.
“This takes total tractor industry sales to 21,233 units in 9MFY23, down 49% year-on-year due to floods, plant closures, lower consumer purchasing power and higher prices,” said auto expert Topline Securities. Kumar said.
