June 13, 2022 (MLN): The passenger car sales in May 2022 were recorded at 19,395, showing a nominal increase of 4.13% MoM against 18,626 units sold in April 2022 as sales are reverting back to their normalized level, the monthly data from the Pakistan Automotive Manufacturers Association (PAMA) showed on Monday.
This takes 11MFY22 volumes to 210,633 units, recording robust growth of 51% YoY led by an increase in purchasing power, launching of new models, non-availability of public transport, and increase in farmer income, a report by Al Habib Capital noted.
Going by the details made available by PAMA, the total production of passenger cars was recorded at 19,000 units in May 2022.
On a yearly basis, car sales saw an upsurge of 50% YoY when compared to 12,934 units sold in May 2021.
The major industry players i.e, INDU and HCAR experienced an increase in volumes on a sequential basis as INDU’s sales edged higher by 2% MoM to 5,882 units in May 2022. HCAR also showed positive growth of 11% with monthly sales of 2,910 units due to consumer strong interest in the Honda City given the current economic situation while the sales of PSMC during the said period stood at 12,212 units, depicting a decline of 3% MoM.
In May 2022, the '1300 cc and above' category took a lead as auto sales were recorded at 9,683 units, 5% MoM higher Within this category, Toyota Corolla and Yaris registered sales of 4,263 units, followed by Honda Cars (Civic and City) with 2,681 units. Suzuki Swift recorded sales at 1,744 units.
The second-highest number of sales was made within the 'below 1000 cc' category, clocking in at 6,184 units, up by 5% MoM. Segment-wise, Suzuki Alto recorded the highest sales at 5,461 units, followed by Suzuki Bolan which sold 723 units in the said month.
The ‘1000cc' category took the third spot as the units sold in May 2022 were 3,528. In terms of growth, the volumetric sales inched down by just 1% MoM and 7% YoY. Within this category, Suzuki WagonR recorded the highest sales at 2,258 units, followed by Suzuki Cultus which sold 1,270 units.
Despite some support coming from new model launches (Civic & Swift), we anticipate a declining trend in overall auto sales volume from here on (a decline of 25% YoY during FY23) as the impact of interest rates, measures taken by the regulators to curb auto imports and cost led price hikes weigh-in, Wasil Zaman at JS Global said.
While volumes may take a dip, it is expected that the sector margins would remain stable in the coming quarters., he added.
Meanwhile, the sales of trucks were recorded at 426 units in May 2022.
While the overall sale of buses rose by 11% MoM during the review month to clock in at 60 units.
According to the data, LCVs, Vans, and Jeeps observed sales of 3,498 units, showing a reduction of 11% MoM during the period under review.
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