Regardless of high car prices, Pakistan’s auto sector posted a growth of 46% to about 27,000 units in May 2022 as compared to the same month last year.
Car sales, comprising sales of non-PAMA (Pakistan Automotive Manufacturers Association), came in at almost 27,000 units, which was nearly flat month-on-month among higher car prices and Eid holidays at the start of the month, Topline Research auto analyst Sunny Kumar said. “The same is up by 46% year-on-year.”
Meanwhile, Muqeet Naeem, the auto analyst of Ismail Iqbal Securities stated “if we take only PAMA data for May 2022, the industry car sales remained flattish at a growth of 2% month-on-month, clocking in at 22,893 units. In 11 months of the fiscal year 2022, industry car sales reached 251,000 units, up by 50%, which is the highest ever 11-month sales numbers,” he added.
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“The weakening of demand is yet to be visible in automobiles as the higher lead times support volumetric growth,” Naeem stated.
“We expect demand contraction by the end of CY2022 due to higher interest rates, imposition of CVT, increase in advance taxes in the budget for FY23, restrictions on auto financing, and the likely third round of price hike by the auto sector.”
- Hyundai Nishat recorded strong numbers registration, a growth of 33% month-on-month led by a surge in sales of Elantra, 148% month-on-month, while Sonata with 37% month-on-month.
- Honda Atlas Car (HCAR) posted the second-highest increase of 11% month-on-month led by growth in sales of City and Civic by 18% month-on-month.
- Indus Motors (INDU) also recorded an increase of 2% month-on-month because of an increase in sales of Yaris and Corolla by 4% month-on-month.
- Pak Suzuki (PSMC), however, reported a decline of 3% month-on-month to 12,212 units in May 2022. Though, the sales of Wagon R and Alto were up by 24% month-on-month and 9% month-on-month respectively.
- Amid Tractors, Millat Tractors (MTL) showed an increase of 12% month-on-month but Al-Ghazi Tractors (AGTL) recorded a drop of 8% month-on-month.
- Pakistan bike sales went down by 2% month-on-month and they remained flat year-on-year in May 2022.
- Trucks and buses sales showed a 3% increase month-on-month and 23% year-on-year in May 2022.