PAMA released the latest auto sales data for Jul’21, portraying an increase of 114% YoY to 24,918 units. The triple digit growth in sales volumes can be attributable to i) Government of Pakistan announcing relief measures by decreasing FED on vehicles across the board and sales tax reduction for below 1000cc cars which resulted in reduction in car prices and higher sales volumes ii) Economy growing at rapid pace, iii) Low policy rate helping car sales to increase drastically as auto financing has increased by PKR 97bn during FY21, and iv) Healthy farmers yields because of higher prices of agricultural products. Likewise, on a monthly basis, auto sales surged by 87% MoM due to pent-up demand and offtake was visibly higher.

In the below 1,000cc category, volumes are significantly up by 402% YoY owing to massive surge in sales of Suzuki Alto. In LCVs 4×4 category, total sales stood at 5,199 units, increasing by 193% YoY due to bounce back in dispatches of Bolan, Ravi and Hilux by 408%, 318% and 232% YoY, respectively.

Courtesy – AHL Research