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Thursday, June 27, 2024

Car sales in Pakistan explode in March 2021 compared to last year

According to data released by the Pakistan Automotive Manufacturers Association (PAMA) on Tuesday, car companies sold 20,801 units in March 2021 compared to 6,986 units dispatched in March 2020, registering YoY growth of 197.8 percent.

Minister for Planning and Development Pakistan, Asad Umar, took to Twitter to say that the car sales are up 31 percent in 9MFY21 compared to the same period last year.

This is in line with the data presented by governor State Bank, Raza Baqir, recently. Mr. Umar also mentioned that “Private sector credit off-take up 34 percent.”

He added saying, “Widespread growth visible while running a current account surplus, which unlike past makes growth sustainable.”

According to the data released by the Pakistan Automotive Manufacturers Association (PAMA) on Tuesday, the increase in car sales of 31.5 percent came as cars sold in the current fiscal year climb 26,914 from 85,330 units sold in the same period in last fiscal year to 112,244 cars sold in 9MFY21.

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It is worth noticing that among the entire auto sector, only the trucks and buses section saw a decrease in sales.

In the Vans and jeeps section, a great jump of 157.6% in sales was seen as sales in the current fiscal year reached 8,090 cumulatively, compared to 3,140 in the last fiscal year. This was due to an additional sale of 2,759 Hyundai’s Tucson which was not in the market last year, and a 128.6 percent increase in the sale of Toyota’s Fortuner.

According to Dawn, Atlas Honda Limited (AHL) broke its own production and sales record in the sales of two-wheelers. The sales of the bikes increased 7.78 percent from last year, achieving 125,442 bikes sold in March 2021. YoY growth in sales of Honda between two fiscal years stood at 25 percent, up from 768,974 bikes sold in last fiscal year.

Toyota’s Hilux saw an MoM increase in sales of 103.3 percent, with 744 units sold in March compared to 366 in February. This can be attributed to some issues in production as February saw a 36 percent decrease in Hilux production, which bounced back with a 145 percent increase in production in March.

Talking about Pak Suzuki, also among the Japanese Big 3 companies in Pakistan, their sales also expanded 13% during 9MFY21 compared to the same period last year. The cars sold by the company reached 66,013 cars compared to 58,303 cars sold last fiscal period.

Overall, in Pakistan, the number of bikes and three-wheelers sold increased 21.7 percent in 9MFY21 to reach 1,438,194, up from 1,181,685 in 9MFY20.

According to analysts the growth in sales can be attributed to the rebound in the economy after the lockdown was eased and the fall in interest rate led to increased borrowing from Banks.

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It must be noted that on a month-on-month basis, March saw a 27 percent increase in auto sales. This can be attributed to a higher number of working days in March compared to the preceding month.