The number of cars sold in the country surged 29% year-on-year to 18,714 units in November 2021 primarily on the back of a low base effect.
According to data released by the Pakistan Automotive Manufacturers Association (Pama) on Monday, car sales had stood at 14,533 units in November 2020.
In a report, Topline Securities analyst Umair Naseer said that Pakistan’s car sales (including sales of non-Pama members) came in at 23,900 units in November 2021.
“On a year-on-year basis, car sales grew 29% in November on the back of a low base effect,” he said. However, he added, car sales by Pama members were down 11% month-on-month to 18,714 units.
“This is the second consecutive month when car sales have declined month-on-month,” he said.
The analyst pointed out that automobile bookings were down 25% from their peak in July 2021.
“We attribute this to the rising financing rates, stringent financing requirements by the State Bank of Pakistan and year-end phenomenon where car sales generally slow down.”
Honda Atlas Cars’ sales swelled 35% year-on-year to 3,010 units in November 2021. The company had sold 2,237 units in the same month of last year.
Indus Motor Company recorded 6,315 vehicle bookings during the month under review against 4,942 units in the same month of last year, an increase of 28%.
Furthermore, sales of Pak Suzuki Motor Company registered an increase of 25% as they rose from 6,803 units in November 2020 to 8,522 units last month.
Hyundai Nishat Motor posted the highest increase in bookings as its sales jumped 58% to 748 units in November 2021. The company had sold 472 units in the same month of last year.
On a month-on-month basis, only Honda Atlas Cars reported an increase in bookings.
“Honda reported 13% month-on-month increase in sales mainly due to a low base effect where the company sold only seven units of BRV,” Naseer said in the report. “Hyundai Nishat and Pak Suzuki Motor reported decline in sales of 30% and 17% respectively.”
Along with these factors, increasing competition from new players including Kia Motors, MG Motors and Changan was impacting the market share of listed auto assemblers, he said.
Published in The Express Tribune, December 14th, 2021.
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