Auto sales in Pakistan up by 46% in Dec 2021
News Report
Auto sales in Pakistan have jumped 46% month on a month (MoM) basis in December 2021.
Sales of auto in Pakistan including cars, LCVs, jeeps & pickups jumped 46%MoM, hitting a record-high of 27,331 units.
The increase was due to pending orders, supply issues, and new orders ahead of expected prices increases in view of the exchange rate depreciation and higher import duties.
The government has recently approved several tax incentives in auto policy 2021. This is likely to cause a hike in auto sales in Pakistan.
The government had linked incentives in the new auto policy with a reduction in prices of cars. However, the local car makers had continued raising the prices of cars in the country.
During the last few months, they had also increased the prices of cars. Now, they were likely to make more increase in prices of cars due to depreciation in the rupee against the dollar.
On a cumulative basis, auto sales during 2021 witnessed a stellar increase of 91% year on year (YoY) basis to 237,409 units compared to 124,422 in 2020.
Interestingly, if we include sales of non-PAMA assemblers i.e., KIA, Changan, and others, total auto sales in 2021 are likely to be record high, Sherman Research said in a report.
Car sales in Pakistan down by 11%
Sales in 2021 jumped on higher car financing due to low-interest rates and base effect from pandemic-induced demand slowdown seen during 2020.
On the other hand, barring three-wheelers (down 12%), sales of trucks, tractors, and buses increased 60%, 41%, and 27% respectively.
Segment-wise, sales of cars below 1000cc jumped 120%YoY during 2021 to 64,742 units; those of 1000cc jumped 105% to 43,319 units; and 1300cc and above increased by 69% to 90,860 units.
Meanwhile, sales of LCVs, vans & jeeps, and pickups jumped 92% to 38,488 units. From a QoQ perspective, auto sales in 4QCY21 declined by 3%QoQ to 67,069 units.
Company-wise, sales of INDU and HCAR rose during 4QCY21 by 4% and 13% to 19,426 and 10,376 units respectively, whereas PSMC’s sales declined by 11%. GHNL and MTL’s sales increased by 21% and 40% whereas those of GHNI, AGTL, HINO, AND SAZEW declined by 13%, 9%, 15%, and 43%, respectively.
