ISLAMABAD: Car sales increased by 65% in the first five months of the current fiscal year 2021-22 to 108,625 units in comparison with the same period of last year, according to data released by the Pakistan Automotive Manufacturers Association (Pama).
Automobile sales grew on the back of low base effect, said auto analyst Umair Naseer. The highest uptick in sales was enjoyed by Pak Suzuki Motor Company (PSMC) during the period under review.
PSMC led the charge amid the new year euphoria with a massive increase of 89% year-on-year in sales during the period of July-November, as per a Topline Research report.
Indus Motor and Honda Atlas Cars registered an increase in sales of 44% year-on-year and 25% year-on-year respectively.
Meanwhile, on a month-on-month basis, car sales recorded a decline for the second consecutive month. A 17% decrease was attributable to rising financing rates, stringent financing requirements by the State Bank of Pakistan (SBP), said Naseer.
The analyst also highlighted that the decline was recorded because of the year-end phenomenon where car sales generally slow down.
On a year-on-year basis, auto sales recorded an increase of 29% in November with a total of 18,714 units sold compared to 14,533 in the same month of the last year.
The yearly increase was driven by Hyundai, up 58% and Honda Cars, up 35%.
Naseer added: “Along with the above-mentioned factors, increasing competition from new players including KIA Motors, MG Motors and Changan are impacting the market share of listed auto assemblers.”
On the other hand, Atlas Honda recorded motorbike sales of 128,503 units in November 2021, up 19% year-on-year.
Tractor sales in November 2020 were up by 43% year-on-year and down by 14% month-on-month. Millat Tractors recorded an increase of 40% year-on-year and a decrease of 7% month-on-month while sales of Al-Ghazi Tractors increased by 51% year-on-year and dropped by 27% month-on-month.
“Millat sales increased amid higher export orders and sales tax subsidy playing an important role,” Hanif added. “We expect the bullish sales momentum to continue due to lower interest rates and improving economy, resulting in better purchasing power parity.”
