Though the new fiscal year brought partial relief to the deteriorating automobile sector as lower interest rates, adjusted by the State Bank of Pakistan (SBP) in the wake of Covid-19, revived vehicle demand, car sales still contracted 8% in July 2020.
According to latest figures released by the Pakistan Automotive Manufacturers Association (Pama) on Tuesday, auto sales were recorded at 11,501 units in July 2020 compared to 12,482 units in the same month of the previous year.
Topline Securities analyst Hammad Akram said Indus Motor Company and Honda Atlas Cars Pakistan registered sales growth, however, Pak Suzuki Motor Company witnessed a decline in sales volume.
“Kia Lucky Motors (non-member of Pama) continued to perform well,” he said. “As per our channel checks, the company recorded car sales of 1,500 units in July 2020.”
Indus Motor Company recorded the highest increase in volumetric sales on a yearly basis with a 68% rise to 4,043 units. The company managed to sell 2,413 units in the same month of last year.
Honda Atlas Cars witnessed a growth of 46% in sales as they rose from 1,694 units in the corresponding month of last year to 2,467 units in July 2020. On the other hand, Pak Suzuki Motors reported a 40% fall in sales to 4,991 units in July 2020 against 8,375 units in July 2019.
Monthly figures
On a monthly basis, all three major carmakers posted encouraging figures as car sales witnessed 36% growth
“Car sales increased 36% month-on-month in July 2020 as Covid-19 lockdowns eased with car assemblers ramping up production levels to meet pent-up demand of consumers, which is evident from 1-3 months of delivery time from the date of booking,” said Akram.
Talking about company-wise growth, he said Indus Motor Company reported highest increase of 60% on monthly basis, followed Pakistan Suzuki Motors (28%) and Honda Atlas Cars (23%).
“We expect demand for cars to grow stronger as lower interest rates for auto financing has revived demand for new cars,” he said.
Tractor sales rose 17% in July 2020 to 3,606 units compared to 3,089 units in same month of previous year while on a monthly basis, they declined 32%.
Published in The Express Tribune, August 12th, 2020.
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No Car for middleman.