Pakistan Car sales are expected to increase by 39% MoM to ~28k units in Dec-2021 due to improvement in supply chain. This will take 1HFY22 volumes to 143.6k units recording robust growth of 67% YoY led by (1) tax relief announced in FY22 budget, (2) launching of new models, and (3) pickup in overall economic activity.

Despite the increase in interest rate from 7% in Jul 01, 2021 to 9.75% in Dec 15, 2021, auto financing in Pakistan has continued to rise, hitting an all-time high at Rs349bn in Nov-21, up 42% YoY.

Pak Suzuki (PSMC) is expected to record highest monthly sales of 15,300 units; up by 80% MoM mainly due to resumption of their halted production.

Strong interest in the newly launched City will bode well for Honda Atlas Car’s (HCAR) sales as they are anticipated to increase by 50% MoM. Whereas, Indus Motors (INDU) is expected to post decline of 5% MoM to ~6k units.

Kia Lucky Motors (KIA) sales is expected to remain stable MoM at ~2,500 units while registering an growth of 72% YoY.

Pakistan Car sales on yearly basis for the month are expected to post a 103% growth in Dec-2021 due to low base effect.

Courtesy – AHCML Research