Pakistan’s car sales up 65% in July-November

KARACHI: Pakistan’s car sales have registered a growth of 65 per cent to reach 108,625 units during the first five months (July-November) of the current fiscal year, compared with 65,998 units in the same period of the last fiscal year, according to the data released on Monday.

Analysts at Topline Securities attributed this rise to lower base effect in the last fiscal year.

Pakistan car sales, including sales of non-Pakistan Automotive manufacturers Association (PAMA) members clocked-in at 23,900 units, down 5 per cent on a month-on-month (MoM) basis in November 2021. As reported by PAMA, car sales are down 11 per cent MoM to 18,714 units.

The analysts said this is the second consecutive month where sales have witnessed a MoM decline. They are now down 25 per cent from their peak sales in July 2021, the analysts added.

They attributed the decline to rising financing rates, stringent financing requirements by the State Bank of Pakistan (SBP) and the year-end phenomenon where car sales generally slows down.

Honda Car (HCAR) reported a 13 per cent MoM increase, mainly due to a low base where the company sold only seven units of BRV last month. Hyundai Nishat and Pak Suzuki Motors Company (PSMC) reported a decline of 30 per cent and 17 per cent, respectively, in their sales.

Along with the abovementioned factors, increasing competition from the new players, including KIA Motors, MG Motors and Changan are impacting the market share of listed auto assemblers.

Similarly, motorbike sales went down 7 per cent on a month-on-month basis to 166,630 units in November 2021. Atlas Honda sales were up 3 per cent MoM and 19 per cent, YoY.

The tractor sales went down 14 per cent MoM, while trucks/buses sales were up 10 per cent MoM.