KARACHI: Car sales saw a 64 percent drop in July compared to last year after high interest rates and prices discouraged buyers, JEE News reported citing industry data.
Apart from tractors, sales of all vehicles, including trucks, passenger cars, pickups, jeeps, three-wheelers and two-wheelers, have seen a decline during the period.
Data from the Pakistan Automotive Manufacturers Association (PAMA) shows that sales of passenger cars (PAMA member cars) fell 64 percent to 3,702 units in July 2023, compared to 3,702 units sold during the same month in 2022. There were 10,378 units.
Sunny Kumar, an analyst at Topline Securities, said rising vehicle prices, expensive auto financing and low consumer purchasing power were among the main reasons for the decline in sales.
During the period, sales of 1300cc and above cars recorded only 1,694 units, which was 62% lower than the 4,464 units sold in the same period last year.
This year’s sales included 208 units of the Honda Civic and City, 249 units of the Suzuki Swift, and 1,067 units of the Toyota Corolla and Toyota Yaris, 80 units of the Hyundai Elantra and 90 units of the Sonata.
During this period, 1000cc cars recorded sales of only 422 units, which included 177 units of the Suzuki Cults and 245 units of the Suzuki Wagon RK.
The sub-1000cc vehicles recorded sales of 1,586 units, including 146 units of the Suzuki Bolan and 1,440 units of the Suzuki Alto.
Buses and trucks saw a decline of 195 units in July as against 274 units in the same month last year. Sales of jeeps and pickups declined to 1,390 units from 1,547 units sold during the same period last year.
However, sales of tractors increased to 2,678 units from 2,254 units in July last year.
Sales of rickshaws and motorcycles declined to 73,588 units during July 2023 from 96,421 units in the same period last year.
Indus Motors (INDU) posted the biggest decline of 26% MoM to 1,368 units in July 2023 due to a 65% MoM decline in Fortuner and Hilux sales.
Pak Suzuki Motor Company (PSMC) recorded a decline of 19% MoM to 2,444 units in July 2023 due to decline in sales of Bolan (-44% MoM), and Alto (-25% MoM).
However, Honda Atlas Car (HCAR) recorded a 61% MoM growth at 494 units in July 2023 mainly due to a lower base from the previous month.
Hyundai sales also rose 2% MoM, while Tuscon sales rose 5% MoM to 328 units in July.
Among tractors, Millat Tractors (MTL) recorded a 22% MoM decline to 1,656 units in July 2023, while Al Ghazi Tractors (AGTL) recorded sales of 1,022 units, up 20% MoM.
Sales of trucks and buses rose 31% MoM, and fell 29% YoY to 195 units in the month under review.
Pakistan’s motorcycle sales declined by 11% MoM and 24% YoY in July 2023. Atlas Honda (ATLH) recorded sales of 62,000 units, down 17% MoM and 23% YoY. High motorcycle prices and low purchasing power of consumers are the main reasons for the decline in sales.
