Car sales up by 36% as the government lifts lockdown
Pak Suzuki sales declined 40% in July as compared to the same period last year, despite the Indus Motor Company (Toyota) and Honda Atlas reporting 68% and 46% growth, respectively.
The overall sales of the industry dropped 8% to 11,501 units during the month, according to the Pakistan Automotive Manufacturers Association.
Kia Lucky Motors, a new player in the industry, sold around 1,500 units, according to Hammad Akram of Topline Securities. Kia’s data is not available on the PAMA website as it is not a member of the association.
The auto industry struggled during the Covid-19 pandemic and the subsequent lockdowns. However, car sales showed an increasing trend with 36% growth on a month-on-month basis as the government eased lockdown restrictions. Car assemblers are now ramping up production levels to meet demand. It is evident from one to three months of delivery time from the date of booking.
All the three main car assemblers in Pakistan have reported an increase in sales on a month-on-month basis. IMC reported the highest increase of 60% followed by Pak Suzuki at 28%. Honda reported 23% increase.
Atlas Honda, the bike manufacturers, reported motorbike sales of 94,003 units in July, up by 17% on a year-on-year and 4% on a month-on-month basis.
“We expect demand for cars to grow stronger as lower interest rates for auto financing have revived demand for new cars,” Akram said.
Out of a total of 11 automobile companies, stocks of ten companies, including Suzuki, Toyota and Honda, listed on KSE-100 remained red on Wednesday.