Car sales in Pakistan witnessed an increase of 49% on a month-on-month (MoM) basis in August 2023, clocking in at 7,579 units, data from the Pakistan Automotive Manufacturers Association (PAMA) showed on Monday.
The significant MoM jump in car sales is due to easing of CKD (completely knocked down) imports, according to industry experts.
However, car sales (including LCVs, vans, and jeeps) were 36% lower on a year-on-year (YoY) basis. In August 2022, sales were recorded at 11,789 units.
“Escalating car prices, expensive auto financing, and the low purchasing power of consumers are among the primary reasons for the decline in YoY sales,” brokerage house Topline Securities said.
First month of FY24: Car sales down 57% YoY as rising prices suppress demand
Pak Suzuki (PSMC) posted the highest increase of 75% MoM, selling 4,268 points in August 2023. The increase was mainly due to higher sales of its Swift (+103% MoM), Alto (+92 MoM), and Cultus (+72 MoM).
Hyundai sales were also up 37% MoM, where Tucson sales were up 42% MoM to 465 units in August.
Honda Atlas Car (HCAR) recorded an increase of 36% MoM to 674 units in August. Indus Motors (INDU) sales were up 13% MoM, led by increased sales of Fortuner and Hilux by 43% MoM, during August.
Amongst tractors, Al Ghazi Tractors (AGTL), and Millat Tractors (MTL) recorded an increase of 52% MoM and 46% MoM, respectively, in August.
This takes total tractor industry sales to 6,645 units in the first two months of the financial year 2024, up by 27% YoY.
Trucks and buses’ sales were down 14% MoM and 51% YoY to 167 units in August. This takes total industry sales to 362 units in 2MFY24, down 41% YoY.
Pakistan bike sales were up 20% MoM while down 14% YoY in August.
Atlas Honda (ATLH) recorded sales of 75K units, up 21% MoM while down 12% YoY during the month.
The YoY decline is due to higher bike prices, and low purchasing power of consumers, the brokerage house said.