Pakistan Car sales are expected to remain flattish MoM to ~21k units in May-2022 as sales are reverting to their normalized level. To note, car companies’ sales increased in March-22 to 26k units, owing to improvements in supply chain disruptions, following which sales fell for the second month in a row.
This will take 11MFY22 volumes to ~238k units recording robust growth of 47% YoY led by (1) Increase in purchasing power (2) Launching of new models, (3) Non-availability of public transport and (4) Increase in farmer income.
Honda Atlas Car’s (HCAR) sales are anticipated to increase by 11% MoM to 2,914k units due to strong consumer interest in the Honda City, given the current economic situation.
Similarly, Indus Motors (INDU) is expected to post an increase of 5% MoM to 6,084 units, led by higher sales of Toyota Yaris. This might result from INDU’s successful marketing campaign under the name “Fun Starts With Yaris”.
However, Pak Suzuki (PSMC) is expected to post a decline of 6% MoM to 11,941 units as its production is reverting to its normalized levels.
Every year for the month, Pakistan Car sales are expected to post strong growth of 40% in May-2022 due to the reasons mentioned earlier.
Despite the economic challenges, we expect auto sales to remain at their current level in 2022, backed by an average delivery period of 3 to 8 months.
Courtesy- AHCML Research