Pakistan Autos sector records highest number of sales in CY21

· Dec’21 total industry sales of 32,142 vehicles (+35%MoM/+82%YoY), consisting of 24,462 passenger cars (+59%MoM/117%YoY), 2,869 LCVs (-15%MoM/+6%YoY), and 299 trucks (-39%MoM/+3%YoY) wrapped up the year on high note, a welcome change from the year end trend in sales generally seen.

· CY21 total industry sales of 298,006 units (+79%YoY) consist of 198,930 passenger vehicles (+91%YoY), 38,473 LCVs (+95%YoY) and 4,616 trucks (+52%YoY), witnessing a sharp rebound as opposed to the downtrend witnessed during the preceding year, taking annual unit sales back to the levels witnessed in CY17-18. The budgetary measures announced back in June provided much needed stimulus to the industry.

· Segment-wise, 800cc and below category emerged as the clear winner, witnessing a growth of 120%YoY to 64,742 units followed by the 1,000cc segment (43,328 units, +105%YoY). The 1,300cc+ premium segment, however, still remained the top most volume driver, clocking in at 90,860 units (+69%YoY). The segment-wise sales composition stood at 46/22/33% for 1,300cc+/1,000cc/800cc segments vs 52/20/28% in CY20.

· Amongst major OEMs, PSMC/INDU/HCAR sold 122,808/69,169/35,173 vehicles during the period, inflating 108/71/61%YoY, implying annual plant utilization (on stated double shift capacity) of 82/89/70% vs. 39/52/44% for CY20 when the industry dealt with a lukewarm demand outlook amidst pandemic inflicted production hurdles.

· The year CY22 remains crucial for the industry where we expect the local OEMs to capture the market share held by imported CBUs due to increasing protective duties (read: FED & RD). On the contrary, the mini budget has also doubled the rate of FED on vehicles above 1,000cc while the GST on 1,000cc segment has been reverted back to 17% thereby rolling back the incentives given in the FY22 budget.

Courtesy – AKD Research

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