KARACHI: Pakistan’s passenger car sales (PAMA members) plunged by 80 percent year-on-year in May 2023 due to non-production days, higher prices of cars and a decline in purchasing power, data showed on Monday. However, sales increased on month-on-month basis.
Arif Habib Research in a report said that Pakistan’s monthly volumetric sales rebound was primarily driven by improved sales of Paks Suzuki Motor Company (PSMC), which experienced a 101 percent jump. However, a YoY dip can be attributed to the adverse impact of rising inflation, affecting consumer affordability.
“Additionally, unplanned plant shutdowns caused by SBP’s (State Bank of Pakistan) import restrictions, continue to hurt overall production and supply of the automobile sector,” it reported. “Notably, HCAR’s (Honda Atlas Cars) production plant was shut down for half of May. Furthermore, we anticipate that automobile sales will remain under pressure throughout the current calendar year.”
According to data released by Pakistan Automotive Manufacturers Association (PAMA), passenger car sales plunged by 80 percent in May 2023 to 3,934 units only against 19,395 units in May 2022. In the 11 months of FY23, a total of 92,554 units were sold, down 56 percent against 210,633 units sold during the same period in FY22.
On month-on-month basis, May 2023 sales remained higher by 38 percent to 3,934 units compared with 2,844 units sold in April 2023.
During this period, sales of 1300cc and above cars were recorded at 1,445 units, down 85 percent compared with the same month of the previous year’s sales of 9,683 units.
In May 2023, 1000cc cars recorded sales of 430 units only, (282 units of Suzuki Cultus and 148 units of Suzuki WagonR) against 3,528 units in the same month last year.
Below 1000cc vehicles recorded a sale of 2,059 units, lower by 67 percent against 6,184 units last year. Suzuki’s Alto sold 1,902 units in May 2023, compared with 5,461 units in May 2022.
Buses and trucks saw a decrease to 153 units in May 2023 from 486 units in the same month last year. The sale of jeeps and pick-ups decreased to 1,356 units from 3,498 units sold during the same period last year.
Sales of tractors dropped to 3,508 units from 4,906 units in May 2022. However, it remained MoM higher than 3,211 units sold in April 2023.
Amongst tractors, Millat Tractors (MTL) recorded an increase of 25 percent MoM to 1,505 units in May 2023 while Al Ghazi Tractors (AGTL) sales were flat at 2,003 units.
The sale of rickshaws and motorbikes also decreased to 96,667 units in May 2023 against 148,001 units in the same period last year. Pakistan’s bike sales were up 18 percent MoM,and down 35 percent YoY in May 2023. Atlas Honda (ATLH) recorded sales of 87,000 units, up 19 percent MoM while down 24 percent YoY.
Sunny Kumar, an analyst at Topline Securities, said including non-PAMA members, car sales clocked in at around 6,200 up 18 percent MoM. “Except for Pak Suzuki, all other companies recorded a decline on MoM basis due to the non-availability of CKD parts,” he said.
PSMC recorded growth of 101 percent MoM to 2,958 units in May 2023 led by jump in sales of Alto (+132 percent MoM), Swift (+129 percent MoM), and Cultus (+59 percent MoM). “The significant increase is due to the low base and availability of CKD parts,” he added.
HCAR posted the highest decline of 58 percent MoM to 87 units. Hyundai sales also remained down 31 percent MoM where Tuscon sales recorded a decline of 38 percent MoM to 194 units and Elantra sales were down 42 percent MoM to 69 units in May 2023.
Indus Motors recorded a decline of 12 percent MoM to 1,718 units in May 2023 compared to 1,948 units in April 2023.
