Car sales in Pakistan increased 10 percent in September from a month earlier, data from the Pakistan Automotive Manufacturers Association (PAMA) showed on October 11, 2023, boosted by ease in import of raw material. In September, car sales (including LCVs, vans, and jeeps) stood at 8,312 units, as compared to 7,579 units recorded in August. “On a month-to-month basis, there has been an improvement in sales volume like last month,” Deputy Head of Research at JS Research Waqas Ghani told Business Recorder. In August, car sales had witnessed a 49 percent increase on a monthly basis.
“This positive trend can be attributed to automotive manufacturers experiencing more accessible access to raw materials, amid relaxation in regulations on the opening of Letters of Credit (LCs) for imports,” Ghani said. However, on year-on-year basis, car sales showed a significant decline of 26 percent when compared with the same period last year. Meanwhile, in the first quarter of FY24, the sales stood at 20,983 units, down 40 percent as compared to the same period the previous year.
“The automobile industry in Pakistan is facing demand challenges, primarily driven by high prices, costly auto financing, and a surge in taxes, resulting in a YoY decline in sales,” Ghani added. Sunny Kumar, deputy head of research, was of the view that car sales increased on a monthly basis after some ease in CKD import issues. “However, escalating car prices, expensive auto financing, and the low purchasing power of consumers are among the primary reasons for the decline in YoY sales,” Kumar wrote in his report for Topline Securities. rb.gy/0hwjk
Source: IBP