Car sales down by 25% MoM in Jan-2022 to 20,610 units

Car sales, as reported by PAMA, declined by 25% MoM in Jan-2022 to 20,610 units. The decline in car sales are attributable to 1) supply constraints 2) price hike and 3) rising financing rates.

The highest decline was recorded by Pak Suzuki (PSMC) as their sales dropped by 42% MoM due to high base. To note, PSMC reported highest ever monthly sales in Dec-2021 primarily due to resumption of their halted production. Similarly, Honda Atlas Cars (HCAR) sales were also down by 14% MoM mainly due to anticipated roll out of new model of Honda Civic.

On the other hand, Indus motor (INDU) sales increased by 9% MoM as Fortuner and Hilux sales surged by 19% MoM led by launch of new facelift variants.

Pakistan car sales on YoY basis were up by 18% in Jan-2022 led by overall pickup in economic activity and launch of new models. In 7MFY22, car sales increased by 61% to 156,586 units.

Motorbikes and Three wheelers sales dropped by 6% YoY while up 8% YoY. ATLH sales increased by 5% YoY and 4% MoM to 120,002 in Jan-2022.

Going forward, overall demand of automobile is expected to remain subdued due to 1) higher prices 2) higher borrowing cost for auto financing and 3) decreased purchasing power of consumers amidst higher inflation.

Courtesy – AHCML Research

Posted in Article & Features.

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