Car sales jump 62% to 181,397 units in FY21

Shahnawaz AkhterWeb Editor

14th Jul, 2021. 02:05 pm
car sales

Analysts believe car sales increased 90 per cent in 2020/21

KARACHI: The sales of locally-manufactured cars have increased 62 per cent to 181,397 units in the fiscal year 2020/22, compared with 111,965 units in the preceding fiscal year, analysts quoted the members of the Pakistan Automobile Manufacturers Association (Pama), as saying, on Tuesday.

However, the analysts believed that Pakistan’s total car sales had increased 90 per cent in 2020/21 after including the figures of non-Pama data and imports.

The analysts at the Topline Securities attributed the growth in the car sales to low base effect due to the Covid-19-linked lockdowns in 2019/20. However, the total car sales remain 28 per cent lower than the highest sales of around 329,000 units recorded in 2017/18.

The analysts believed that the car sales would touch 300,000 units in 2021/22 driven by low interest rates; launch of new models; and reduction in the car prices through reduction in taxes.

Indus Motors remained a star performer during the year, as its sales increased 102 per cent to 57,200 units, mainly driven by the introduction of new models.

Honda Car also posted strong sales growth of 79 per cent, despite launch anticipation of the new model of Honda City.

A gradual gear up by Hyundai Nishat with its inclusion of two new models, Tuscon and Elantra, in 2020/21, brought in the total sales to 5,800 units. To recall, Hyundai Nishat officially launched its products in January 2020. Lucky Motor Corporation (KIA, non-Pama member) is estimated to have made sales of around 23,000 units during the year.

In June 2020, Pakistan’s car sales increased 57 per cent YoY but down 12 per cent MoM. The analysts said the expectations of a cut in the federal excise duty and sales tax in the federal budget may have delayed car purchases.

However, Atlas Honda recorded bike sales of 1.29 million in 2020/21, up 48 per cent YoY. Tractor sales also followed the same trajectory, growing 55 per cent to 50,600 units.

 

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