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Wednesday, May 22, 2024

Pakistan’s car sales decline for the second consecutive month!

Experts claim Pakistan's car sales declined by 11% MoM to 18, 595 units due to the tightening of auto financing and lower purchasing power amid higher inflation. Increasing competition from new players including KIA Motors, MG Motors, and Changan also played a key role.

According to data shared by Pakistan Automotive Manufacturers Association (PAMA), car sales decreased by 11% MoM. This is the second consecutive month where car sales witnessed a decline.

Sales are down by 25% from their peak sales in Jul 2021. As per the report by PAMA, Hyundai Nishat recorded the highest decline as its sales were down by 30%. Pak Suzuki (PSMC) sales were down by 17% primarily led by Alto which recorded a decline of 52% MoM. To clarify, delays in shipment hindered production.

Similarly, Indus Motors (INDU) sales were also down by 8% MoM led by Corolla and Fortuner having a decline of 17% MoM each. On the other hand, Millat Tractors recorded an increase of 40% YoY and a decrease of 7% MoM while sales of Al-Ghazi Tractors increased by 51% YoY and dropped by 27% MoM. Moreover, motorbike sales went down 7% on a MoM basis to 166,630 units in November 2021.

Read more: Car sales climbing: Auto manufacturers

Experts claim Pakistan’s car sales declined by 11% MoM to 18, 595 units due to the tightening of auto financing and lower purchasing power amid higher inflation. Supply constraints also contributed to the decline.

Additionally, increasing competition from new players including KIA Motors, MG Motors, and Changan is impacting the market share of listed auto assemblers.

Read more: KIA’s latest crossover Stonic spotted in Pakistan

Increase in overall car sales

On a positive note, the overall car sales witnessed a massive increase of 65%. Despite a drop in sales in November for some segments, the auto sector recorded an overall positive trend during the first five months (July to November) of the current fiscal year.

According to data released by PAMA, total car sales jumped to 90,303 units during the five-month period from 55,779 units a year ago despite the mild drop in sales in November to 15,351 units from 17,413 in October.

Suzuki Cultus recorded the highest jump of 134pc which is 13,105 units in July-November compared to 5,596 last year. Suzuki WagonR bagged the number two spot with sales increasing to 93pc to 8,768 from 4,539 units.

Meanwhile, Toyota Corolla emerged as the third best-selling sedan with a jump of 92pc in sales to 12,723 from 6,632 units.

Read more: Pakistan’s Auto sector sees a 250pc uptick in car sales YoY