September 11, 2023 (MLN): Passenger car sales witnessed a significant surge of 59.62% MoM in August 2023, clocking in at 5,909 units compared to 3,702 units recorded in the previous month, the latest data from the Pakistan Automotive Manufacturers Association (PAMA) showed today.
However, on a year-on-year basis, the sales of cars declined by 34% YoY compared to the 8,980 cars sold in August 2022.
The total production of passenger cars was recorded at 6,231 units in August 2023 up by 78.13% MoM compared to 3,498 in July 2023, conversely, on a yearly basis, the production has decreased by 35.11% YoY compared to the production of 9,602 units in August 2022.
With the recent relaxation in import policies, the bill for car CKD imports significantly increased.
During July, imports of CKD four-wheelers, including cars, buses, jeeps, and pick-ups, surged by 3.43x MoM to $117.6m as per the SBP data, and by 77% MoM to $70.6m as per Pakistan Bureau of Statistics (PBS) data.
According to SBP data, this figure represents the highest monthly import since June 2022 for the local car manufacturers.
This development had a positive impact on car production in August, due to an upswing in manufacturing activities.
It is worth recalling that many car assemblers had tightened their belts on production due to the non-availability of CKDs/parts, owing to the import restrictions and the tight dollar situation.
In 2MFY24, car sales stood at 9,611 plummeting by 50.35% YoY compared to the same period last year.
This was mainly caused by the low economic activity and the high interest rates that discouraged car financing.
The dollar shortage also affected the imports of car parts and raw materials, forcing some plants like Honda and Suzuki to shut down temporarily.
The output of Jeep, SUVs, and other vehicles also suffered from unfavorable market conditions.
The maximum number of sales was made within the 'Below 1000cc' category at 2,935 units. Within this category, Suzuki Alto recorded the highest sales at 2,769 units, followed by Suzuki Bolan which sold 166 units.
The second highest number of sales was made within the '1300cc and Above' category at 2,310 units. Within this category, Toyota (Corolla & Yaris) recorded the highest sales at 1,119 units, followed by Suzuki Swift and Honda Cars (Civic & City) which sold 506 and 492 units respectively.
On the contrary, the '1000cc' category witnessed a sale of 664 units during the month.
Meanwhile, the total number of trucks sold during the month stood at 133 units, which translates into a decline of 19.39% MoM and 54.92% YoY as compared to 165 units in the previous month and 295 units in the same period last year.
Meanwhile, motorbike and three-wheelers sales declined by 13.75% YoY in August 2023, to stand at 88,318 units, as compared to 102,403 in August 2022.
While the production increased by 20% MoM compared to 73,588 units sold in July 2023.
Honda held the majority share in both the production and sales of 2/3 wheelers, with 85% share, clocking in its sales at 137,083 units and production at 136,784 units in 2MFY24.
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Posted on: 2023-09-11T16:56:59+05:00