Alam Zeb Khan
ISLAMABAD: Car sales in Pakistan witnessed a decrease of 8 percent in the month of December 2022 as compared to December 2021 as reported by Pakistan Automotive Manufacturers Association (PAMA) on Wednesday.
According to the data revealed by PAMA, car sales in the country (comprising sales of Non-PAMA members) clocked in at 18k units down by 8% on a month-on-month (MoM) basis primarily due to non-availability of CKD parts amid LC (Letters of credit) issues which led to non-production days and year-end phenomenon where consumers generally delay their purchases to get cars having new year model.
Meanwhile, on a YoY basis, low demand dynamics were experienced from a 38% YoY fall in sales in Dec-2022, also taking 1HFY23 decline to 38% YoY. This is largely attributable to increasing car prices, expensive auto financing, and the low purchasing power of consumers due to financial crises in the country.
However, Honda Car (HCAR) reported an increase of 5% MoM to 2,079 units in Dec-2022 while Indus Motors (INDU) reported a decrease of 13% MoM to 2,823 units in Dec-2022 due to non-production days.
Similarly, Hyundai sales went up by 37% MoM whereas Tuscon sales increased by 67% MoM and Elantra by 41% MoM. PSMC reported a decrease of 8% in sale MoM to 11,342 units.
Sale of Tractors and Bikes
Amongst the sale of tractors, Millat Tractors (MTL) recorded a decrease of 55% MoM to 501 units in Dec-2022 primarily due to plant closure, whereas Al-Ghazi Tractors (AGTL) witnessed an MoM increase in sales to 514 units in Dec-2022. This makes total tractor industry sales 11,513 units in 1HFY23 down 57% YoY due to floods, economic uncertainty, plant shutdown, lower consumer buying power, and higher prices.
Pakistan bike sales also recorded a decline of 6% MoM and 27% YoY in Dec-2022. Atlas Honda (ATLH) recorded sales of 85K units, down 8% MoM and 26% YoY.
Meanwhile, Trucks & Buses sales decreased by 16% MoM and 15% YoY to 286 units in Dec-2022. This makes 1HFY23 sales to 1,947 units in 1HFY23 decline 36% YoY primarily due to drop-in transportation activity and the slowdown in the overall economy.
It is worth noting here that the last couple of years experienced a major continuous increase in automobile prices and the masses were complaining against the monopoly of the locomotive industry for changing prices time and again.
The customers were demanding the government to regulate the prices but still, no appropriate action has been taken. The decline in the price for the month of December might also be one such reason that the complaints of the customers were still not addressed resulting decrease in the sale.
