November 15, 2022 (MLN): The sales of passenger cars have increased by 21% MoM to 11,129 units in October compared to 9,213 units in September, the latest data released by the Pakistan Automobile Manufacturers Association (PAMA) revealed.
However, on the yearly basis, the sales witnessed a plunged of 36% YoY compared to 17,413 units of cars sold in October 2021.
This decline in sales was due to the government’s efforts to curb demand amid high inflation rates. Further, the hike in prices amid high rising costs and PKR depreciation along with low production hours and rising policy rate contributed to a negative impact on car sales, a report by Darson Securities noted.
The positive aspect of the scenario is that on a monthly basis the industry showed a positive growth of 20.8% which shows the underlying fundamentals within the sector are still strong and once the government restrictions are lifted on CKD parts with a lower interest rate along with the stable exchange rate should get the sector back to a strong growth phase, it added.
Jeeps/SUVs also showed an incline of 29.4% MoM, for July 2022 as 1,791 units were sold as compared to 1,384 units in the SPLY. Further, the sales of trucks and buses showed negative growth as they declined by 13.8% MoM in October 2022.
During 4MFY23, the volume of car sales stood at 39,700 units, plummeting by 47% YoY compared to 74,952 units in 4MFY22.
