Pakistan car sales (as reported by PAMA) clocked in at 5K units, down 16% MoM and 57% YoY. Including Non-PAMA members, car sales clocked in at ~6K, down 13% MoM.

Escalating car prices, expensive auto financing, and low purchasing power of consumers are among the primary reasons for the decline in sales.

Indus Motors (INDU) posted the highest decline of 26% MoM to 1,368 units in Jul-2023, led by a decline in sales of Fortuner and Hilux by 65% MoM.

PSMC recorded decline of 19% MoM to 2,444 units in Jul-2023 led by decline in sales of Bolan (-44% MoM), and Alto (-25% MoM).

However Honda Atlas Car (HCAR) recorded increase of 61% MoM to 494 units in Jul-2023 mainly due low base of last month.

Hyundai sales also up 2% MoM where Tuscon sales up 5% MoM to 328 units in Jul-2023.

Amongst Tractors, Millat Tractors (MTL) recorded decline of 22% MoM to 1,656 units in Jul-2023 while Al Ghazi Tractors (AGTL) recorded sales of 1,022 units up 20% MoM.

Trucks & Buses sales were up 31% MoM while down 29% YoY to 195 units in Jul-2023.

Pakistan bike sales were down 11% MoM and 24% YoY in Jul-2023. Atlas Honda (ATLH) recorded sales of 62K units, down 17% MoM and 23% YoY. Higher bike prices, and low purchasing power of consumers are the primary reasons for the decline in sales.

Courtesy- Topline Securities