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KARACHI: Automobile sales surged to 7,579 units in August 2023, posting a staggering 49% month-on-month (MoM) increase. However, on a year-on-year (YoY) basis, sales of vehicles decreased by 36%.
According to data released by the Pakistan Automobile Manufacturers Association (PAMA), sales of cars in the first two months (July-August) of current financial year dropped by 47% as compared to the same period of last year and reached 12,671 units.
Arif Habib Limited auto analyst Muhammad Abrar Polani, in his report, attributed the decline in YoY vehicle sales to increasing prices of cars, expensive auto financing and the limited purchasing power of consumers.
Talking to The Express Tribune, Polani said “car sales have increased MoM. But the YoY slowdown is the result of expensive auto financing. Besides, automakers have jacked up prices significantly that kept consumers at bay.”
He, however, pointed out that the remarkable improvement in sales came as a result of elimination of import restrictions during July-August 2023. Consequently, “automobile sales reached their highest point since March 2023.”
Furthermore, in response to the inflationary pressures, the consumers shifted preferences towards small cars with engine capacity below 1,000cc, resulting in a notable 85% MoM increase in sales of vehicles falling in that category, he added.
Company-wise data showed that Indus Motor sold 1,548 units in August 2023, up by 13% compared to the previous month.
Pak Suzuki Motor Company contributed the most to the rise in month-on-month sales, with a massive rise of 75%. It sold 4,268 units in August 2023. Of the total, the company sold 2,769 units of Alto against July sales of 1,440 units, up by 92%.
Honda Atlas Cars’ sales showed a MoM surge of 36% as it sold 674 units.
Auto-sector expert Mashood Khan, while talking to The Express Tribune, stressed the need for forging collaboration among the government, industry associations and other stakeholders for formulating effective policies and strategies for a swift recovery of the auto sector.
“There is a need to introduce targeted stimulus packages for the auto industry to provide financial relief, promote local production and encourage consumer spending.”
tribune.com.pk
According to data released by the Pakistan Automobile Manufacturers Association (PAMA), sales of cars in the first two months (July-August) of current financial year dropped by 47% as compared to the same period of last year and reached 12,671 units.
Arif Habib Limited auto analyst Muhammad Abrar Polani, in his report, attributed the decline in YoY vehicle sales to increasing prices of cars, expensive auto financing and the limited purchasing power of consumers.
Talking to The Express Tribune, Polani said “car sales have increased MoM. But the YoY slowdown is the result of expensive auto financing. Besides, automakers have jacked up prices significantly that kept consumers at bay.”
He, however, pointed out that the remarkable improvement in sales came as a result of elimination of import restrictions during July-August 2023. Consequently, “automobile sales reached their highest point since March 2023.”
Furthermore, in response to the inflationary pressures, the consumers shifted preferences towards small cars with engine capacity below 1,000cc, resulting in a notable 85% MoM increase in sales of vehicles falling in that category, he added.
Company-wise data showed that Indus Motor sold 1,548 units in August 2023, up by 13% compared to the previous month.
Pak Suzuki Motor Company contributed the most to the rise in month-on-month sales, with a massive rise of 75%. It sold 4,268 units in August 2023. Of the total, the company sold 2,769 units of Alto against July sales of 1,440 units, up by 92%.
Honda Atlas Cars’ sales showed a MoM surge of 36% as it sold 674 units.
Auto-sector expert Mashood Khan, while talking to The Express Tribune, stressed the need for forging collaboration among the government, industry associations and other stakeholders for formulating effective policies and strategies for a swift recovery of the auto sector.
“There is a need to introduce targeted stimulus packages for the auto industry to provide financial relief, promote local production and encourage consumer spending.”
Auto sales rise 49% after end to import controls | The Express Tribune
Expert calls for formulating effective policies for swift recovery of auto sector
