• Automobile sales in Nov’23 reached 6.5K units, marking a 5% MoM increase but a significant 65% YoY decline. Cumulative 5MFY24 sales stand at 33.6K units, reflecting a 50% YoY decrease compared to the 67.1K units in 5MFY23.
• The MoM increase is primarily attributed to a low base effect, while the YoY decline is linked to elevated car prices and diminished consumer affordability. Factors such as a decline in overall consumer purchasing power, an unprecedented surge in inflation, PKR depreciation, and higher interest rates have collectively contributed to a diminished demand for purchasing new passenger vehicles.
• Despite price cuts announced in Oct’23, they have not proven sufficient to stimulate recovery in auto sales volumes. The economic challenges persistently affect consumer sentiment, presenting a notable obstacle to the revival of the automotive market.
• In specific segments, 1,300cc and above category experienced a 29% MoM surge; 1,000cc segment saw a 39% MoM increase. The below 1000cc segment witnessed a 23% MoM decline, totaling 2,113 units.
• Indus Motors (INDU) reported a 9% MoM decline in volumetric sales recording,956 units in Nov’23, with Corolla and Yaris sales dropping by 13% MoM. The company wasn’t able to attract customers despite a 6% price cut across its different passenger car variants towards the end of Oct-23.
• Pak Suzuki (PSMC) experienced an 8% MoM decline in overall sales in Nov’23.
• On the contrary, Honda Atlas Cars (HCAR) witnessed a remarkable 121% MoM increase in volumetric sales. Civic/City sales settled at 912 units, up by 141% MoM.
• Bike sales volumes witnessed a 13% MoM and 21% YoY decline in Nov’23. Sales volumes of Atlas Honda (ATLH) reached 76K units, down 16% MoM and 18% YoY.
• Tractor sales, on the other hand, suppressed by 33% MoM in November 2023. AGTL experienced a sharp 68% MoM decline, while MTL sales arrived at 2,809 units, shrinking by 6% MoM. The tractor sales augmented due to better farmer income amid bumper crops this year
Courtesy – AHL Research