Car sales grow 48% in November 2020

All three major automakers report year-on-year growth

KARACHI:

Undeterred by the impact of second wave of Covid-19 on economic activities in Pakistan, the automobile sector maintained its growth trend in November 2020 as all three major manufacturers reported year-on-year growth.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA) on Friday, car sales registered an increase of 48% to 14,454 units in November 2020. Automobile companies had managed to sell 9,789 units in the same month of last year, the data revealed.

Topline Securities analyst Fawad Basir pointed out that if sales of Lucky Motor Corporation (which was not a member of PAMA) were taken into account, the total yearon-year growth in November 2020 would be 63%.

During the month, Indus Motor Company recorded the largest growth of 87% as its sales rose from 2,640 units in November last year to 4,942 units in November 2020. Honda Atlas Cars sold 2,237 vehicles in November 2020, which was 72% higher than 1,303 vehicles sold in November 2019.

Similarly, sales of Pak Suzuki Motor Company swelled 16% to 6,803 units in the month under review against 5,846 units sold in the corresponding month of last year.

"This is the first year-on-year increase for Pak Suzuki Motor Company during the ongoing fiscal year as some of the production issues have been resolved," said Basir. In addition, Hyundai managed to sell 472 vehicles during the month, the data revealed.

The analyst added that car sales inched up 3% on a month-on-month basis. He elaborated that the monthly increase was driven by Pak Suzuki Motor Company's growth of 12% as sales of Cultus rose 86% and Ravi sales soared 255%. According to him, sales of Honda Atlas were the same as in October while volumes of Indus Motor declined 10% on a month-on-month basis.

He added that Hyundai Nishat recorded month-onmonth sales growth of 63%. "Kia Lucky Motor sold around 1,500 units, as per our channel checks."

The analyst expected demand for cars to strengthen owing to low interest rates and a recovery in economic activity.