KARACHI, April 12, 2023: Despite high car prices, Pakistan’s auto sector recorded a growth of 98% to about 7,201 units (passenger cars) in March compared with 3,642 units sold in the previous month, providing a ray of hope in the beleaguered auto sector that has picked up some pace after several months.
Car sales, including sales of non-PAMA (Pakistan Automotive Manufacturers Association), however, plunged 68% in March against 22,799 units in the same month of the previous year due to non-production days and a decline in purchasing power.
The monthly growth can be attributed to better volumetric sales of Pak Suzuki Motor Company (PSMC) and Indus Motors, which showed an increase of 475% month-on-month and 6% month-on-month, respectively.
In addition, Arif Habib Limited in its commentary stated that due to the rising inflationary pressure, consumers switched towards affordable vehicles of below 1000cc, which went up by 423%.
Fears of a slowdown in the coming months still exist as the measure taken by the State Bank of Pakistan (SBP) to curb imports are still intact; hence, auto assemblers need prior permission to import completely knocked-down (CKD) units and raw materials resulting in production limitations.
According to the data released by PAMA a day earlier, along with buses and trucks, sales of all other variants of cars, jeeps, tractors, pick-ups and three-wheelers as well as two-wheelers witnessed a year-on-year decline in March 2023.
In the first nine months of the fiscal year 2022-23, a total of 85,776 units were sold, down 50% against 172,612 units sold during the same period in FY22.
During the period under review, sales of 1300cc and above cars were recorded at 2,913 units, down 67% compared with the same month of the previous year’s sales of 9,280 units.
In March 2023, 1,000cc cars recorded sales of 964 units only, (475 units of Suzuki Cultus and 489 units of Suzuki WagonR) against 2,410 units in the same month last year.
Breakdown of the data:
Below 1000cc vehicles recorded a sale of 3,324 units, lower by 70% than 11,109 units last year;
Suzuki’s new Alto sold 2,542 units in March 2023, compared with 9,814 units in March 2022;
Buses and trucks saw a decrease to 308 units in March from 565 units in the same month last year
Sale of jeeps and pick-ups decreased to 2,150 units from 4,403 units sold during the same period last year;
Sales of tractors dropped to 2,984 units from 5,651 units in March 2022;
Sale of rickshaws and motorbikes also decreased to 84,307 units in March against 151,010 units in the same period last year
PSMC recorded a jump of 475% on a monthly basis to 5,628 units primarily due to the availability of CKD parts amid an easing of LC issues while Indus Motors reported an increase of 6% month-on-month to 1,912 units in March.
However, Honda Car (HCAR) sales declined by 49% month-on-month to 835 units in March due closure of the plant for 23 days on account of CKD issues.
Performance of record of other automakers:
Hyundai sales were down 34% month-on-month,
Tuscon was down 46% month-on-month to 380 units,
Sonata was down 40% month-on-month to 118 units in the mother under review.
Amongst tractors, Millat Tractors recorded an increase of 3% month-on-month to 2,669 units in March,
Al-Ghazi Tractors recorded a decline of 57% month-on-month in sales to 315 units in the month.
“This takes total tractor industry sales to 21,233 units in 9MFY23 down 49% year-on-year due to floods, plants shutdown, lower consumer buying power and higher prices,” Topline Securities auto expert Sunny Kumar said.