According to PAMA, car sales fell by 25% MoM to 20,610 units in January 2022. Car sales are down due to 1) supply limits, 2) price increases, and 3) rising finance rates.
Pak Suzuki (PSMC) had the greatest reduction, with sales falling by 42 percent MoM due to a high base. PSMC recorded its best monthly sales ever in December 2021, owing to the restoration of previously suspended manufacturing. Similarly, Honda Atlas Cars (HCAR) had a 14 percent drop in sales year over year, owing to the expected release of a new Honda Civic model.
On the other hand, Indus motor (INDU) sales increased by 9% MoM as Fortuner and Hilux sales surged by 19% MoM led by launch of new facelift variants.
Pakistan car sales on YoY basis were up by 18% in Jan-2022 led by overall pickup in economic activity and launch of new models. In 7MFY22, car sales increased by 61% to 156,586 units.
Motorbikes and Three wheelers sales dropped by 6% YoY while up 8% YoY. ATLH sales increased by 5% YoY and 4% MoM to 120,002 in Jan-2022.
Going forward, overall demand of automobile is expected to remain subdued due to 1) higher prices 2) higher borrowing cost for auto financing and 3) decreased purchasing power of consumers amidst higher inflation.