Passenger car sales plummeted by 50% YoY | 13% MoM, on the back of i) need for prior permission on import of raw materials by the SBP, which led to lower inventory levels and slashed production, ii) increased auto financing rate due to interest rate hike curbing demand, iii) shrunk purchasing power due to receding incomes amid high inflation, and iv) delay in car deliveries in lieu of massive rainfalls.

The sales of the 1,300cc segment and above dropped by 22% YoY as the sales of Fortuner and Hilux went down by 42% YoY. Albeit, on a monthly basis the sales increased by 27% MoM as Hyundai Elantra and Sonata sales depicted a massive jump.

During Aug’22, sales in the 1,000cc segment went down by 18% MoM. Major contributor remained Cultus (-38% MoM).

INDU: INDU was an outlier given its sales elevated by 63% MoM to 3,876 units, on account of a 67% MoM surge in combined sales Corolla and Yaris given availability of excess inventory from last month, we view.

PSMC: PSMC sold 3,954 units during Aug’22, down by 41% MoM, due to low inventory levels. Alto sales were a major contributor to the decline, dipping by 50% MoM.

HCAR: HCAR also faced a decline (of 29% MoM) in Aug’22, mainly due to a fall in Civic and City sales by 40% MoM.

Tractors: During Aug’22, tractor sales went up 76% MoM, contributed by MTL (+153% MoM) and AGTL (+14% MoM).

Courtesy – AHL Research