In a sign of revival, car sales rise 9%

Automakers sold 10,000 units in Sept as govt eased import curbs

KARACHI:

Car sales revived partially as they rose 9% to 10,000 units in September after the government eased conditions for import of auto parts and kits in the wake of improved foreign exchange situation in the country.

Citing data released by the Pakistan Automotive Manufacturers Association (PAMA), Topline Research analyst Sunny Kumar said Pakistan’s car sales surged 10% to 8,300 units in September compared to the prior month.

“When non-PAMA members are included, car sales came in at 10,000, up 9% month-on-month and down 23% year-on-year.” The month-on-month increase was due to the easing of CKD (completely knocked down) kit import issues, he said.

However, escalating car prices, expensive auto financing and the low purchasing power of consumers were among the primary reasons for the decline in year-on-year sales, he added.

Honda Atlas Cars (HCAR) recorded the highest increase of 99% month-on-month, reaching 1,342 units in September, primarily due to the low base in the previous month when the company sold only 674 units.

Pak Suzuki Motor Company (PSMC) was the only automaker that recorded a decline of 1% month-on-month as it sold 4,234 units with 8% decline in Alto sales.

Sales of other car models including Ravi, Bolan and Cultus increased 58%, 38% and 9%, respectively. The demand for Swift and Wagon-R remained flat month-on-month at 506 and 359 units, respectively.

Hyundai sales went up 5% where Porter sales were higher by 48% at 177 units in September. Indus Motor (INDU) sales rose 3% month-on-month, led by 27% increase in sales of Fortuner and Hilux.

Published in The Express Tribune, October 12^th, 2023.

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