July 15, 2022 (MLN): The passenger car sales in the outgoing fiscal year 2022 clocked in at 234,180 units, recording robust growth of 55% compared to 151,182 units recorded in FY21, driven by an increase in purchasing power, launching of new models, non-availability of public transport, and increase in farmer income, the latest data from the Pakistan Automotive Manufacturers Association (PAMA) showed on Friday.
In June 2022 alone, the auto sales were recorded at 23,547 units, up by 21% against the previous month led by double-digit growth in HCAR and PSMC, with the latter posting record high sales owing to aggressive pre-buying, in anticipation of price hikes and taxes along with higher demand for recently launched models, a research note by JS Global said.
On a yearly basis, car sales saw a two-fold increase when compared to 11,569 units sold in June 2021.
Going by the details made available by PAMA, the total production of passenger cars was recorded at 22,410 units in June 2022.
The major industry players i.e, PSMC and HCAR experienced an increase in volumes on a sequential basis as PSMC’s sales jumped by 31% MoM to 16,009 units in June 2022 due to consumers’ strong pre-buying behavior. HCAR also showed positive growth of 34% with monthly sales of 3,903 units. While INDU’s sales observed a 7% MoM rise to 6,309 units.
In June 2022, the '1300 cc and above' category took a lead as auto sales stood at 10,242 units, 6% MoM higher as opposed to 9,683 units in May 2022. Within this category, Toyota Corolla and Yaris registered sales of 4,453 units, followed by Honda Cars (Civic and City) with 3,421 units. Suzuki Swift recorded sales at 1,676 units.
The second-highest number of sales was made within the 'below 1000 cc' category, clocking in at 8,703 units, up by 41% MoM. Segment-wise, Suzuki Alto saw the highest sales at 7,487 units, followed by Suzuki Bolan with 1,216 units sold in the said month.
The ‘1000cc' category took the third spot as the units sold in June 2022 were 4,602. In terms of growth, the volumetric sales went up by 30% MoM and 47% YoY. Within this category, Suzuki Cultus recorded the highest sales at 2,468 units, followed by Suzuki WagonR which sold 2,134 units.
Despite robust sales during Jun-2022, we expect the trend to wear off in the coming months owing to various factors which are also evident from the closure of advance bookings by most auto companies (INDU, PSMC and KIA) citing uncertainty and higher production costs as culprits, Wasil Zaman at JS Global said.
It is expected that the auto demand would drop by 25% YoY during FY23 as the impact of higher interest rates, measures taken by the regulators to curb auto imports and cost-led price hikes weigh in, he added.
Meanwhile, the sales of trucks were recorded at 465 units in June 2022.
While the overall sale of buses rose by 107% MoM during the review month to clock in at 124 units.
According to the data, LCVs, Vans, and Jeeps observed sales of 4,832 units, showing a rise of 38% MoM during the period under review.
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