Car sales increase by 25pc in March

KARACHI: Car sales in March went up by 25 percent as compared to February while the industry showed growth of 30 percent when compared to sales it recorded in March 2021.

According to auto industry sales data shared by Pakistan Automotive Manufacturers Association (PAMA) on Tuesday, the industry sold 27,131 units in March compared to 21,664 sold in February. The industry sold 20,813 units in March last year.

Auto industry sold a total of 205,381 cars in the first nine month of fiscal year 2022 – recording a strong growth of 52 percent as compared to the corresponding period last year, when the industry sales were 134,718 units.

Indus Motor Company, which assembles and sells Toyota cars in Pakistan, posted sales growth of 53 percent month on month selling 7,068 units as compared to 4,630 units in February. Year-on-year, sales grew by six percent. However, the company posted 33 percent growth in the first nine month of fiscal year 2022 selling 56,567 units.

Meanwhile, Honda sold 3,651 units in March – 33 percent more than the previous month of February and 16 percent more than March last year. Company’s nine month sales in fiscal year 2022 increased by 38 percent to 30,010 units as compared to 21,698 units during the corresponding period last year.

Industry volumes leader Pak Suzuki sold 15,011 cars in the month of March, showing an increase of 18 percent month on month and 48 percent as compared to March 2021 sales. Meanwhile, the company's nine month sales crossed 100,000-mark in fiscal year 2022 showing an ascent of 66 percent. The company sold 109,419 units as compared to 66,013 units in the first nine month of fiscal year 2021.

Pakistan’s smallest engine size car 660cc Alto has been the highest selling car so far in the ongoing fiscal year 2022 with 53,241 units sold so far. Car sales showed an increase of 37 percent month on month and 107 percent year on year. Its nine month sales also increased by 83 percent.

New entrant Hyundai has posted a growth of 126 percent – selling 8,264 units in the first nine month of fiscal year 2022 as compared to 3,653 units in the same period last year. However, the company’s monthly sales dropped by 11 percent to 1,306 units.

Tractor sales increased by 25 percent to 5,651 units as compared to 4,507 units in the same period last year. Nine month sales of the segment increased by 13 percent to 41,603 units in fiscal year 2022.

Bus sales increased from 45 units to 65 units in March. Sales in the first nine month dropped by 11 percent to 458 units.

Monthly sales of trucks were consistent at 500 units in March, while nine month sales grew by 66 percent to 4,493 units.

Two and three wheeler sales increased 9 percent month-on-month to 148,741 units. However, the segment’s sales declined 13 percent year-on-year as its sales stood at 170,350 units in March 2021. First nine month sales in fiscal year 2022 also declined by four percent to 1,377,281 units.

Muqeet Naeem, Research Analyst at Ismail Iqbal Securities said that auto sales might come down in the next fiscal year as prices have gone up to 36 percent since the price cut that happened last year following the reduction in taxes and duties.

Arif Habib Limited Research Analyst Wasil Zaman also said that high sales volumes might not sustain for long due to high car prices and taxes.

Meanwhile, according to a Sherman Securities report, another price hike by the car assemblers could not be ruled out. “A hike in interest rate may affect car leasing, eventually reducing demand going forward.”

However, the report added the auto sector has shown resilience in the past and sales might not go down as indicators attached to the sector suggest.

Analysts concur that sales might remain intact during the remaining part of the ongoing fiscal year as car companies have already booked orders.