Car sales in Pakistan down by 11%
News Report
Car Sales in Pakistan including sales of Non-PAMA members clocked in at 23900 units, down 5% MoM in Nov 2021. As reported by PAMA, car sales are down 11% MoM to 18,714 units.
This is the second consecutive month where sales have witnessed an MoM decline. They are now down by 25% from their peak sales in Jul 2021. It attributed this to rising financing rates, stringent financing requirements by SBP, and year-end phenomena where car sales generally slow down.
On a YoY basis, car sales grew by 29% YoY in Nov 2021 on the back of the low base effect. In 5MFY22, car sales are up 65% YoY to 108,625 units.
Honda Car (HCAR) reported a 13% MoM increase, mainly due to a low base where the company sold only 7 units of BRV last month. Hyundai Nishat and Pak Suzuki Motors (PSMC) reported a sales decline of 30% and 17%, respectively.
Along with the above-mentioned factors, increasing competition from new players including KIA Motors, MG Motors, and Changan are impacting the market share of listed auto assemblers.
Pakistan bike sales were down 7% MoM to 166,630 units in Nov 2021. Atlas Honda (ATLH) sales were up 3% MoM and 19% YoY.
Pakistan tractor sales were down 14% MoM while Trucks/Buses sales were up 10% MoM.
Earlier, Car for sales in Pakistan had witnessed a decline of around 17 percent during April 2021 on the monthly basis.
PAMA has revealed in a recent report revealed that car sales had declined by 17% MoM in Apr-2021, affected by the start of the month of Ramadan and supply-side issues.
The same, including Lucky Motors Corporation (KIA, non-member of PAMA), is down by around 16% MoM.
Amid countrywide lockdowns imposed by the Federal and Provincial governments in March and April 2020, no car sales in Pakistan were recorded during Apr-2020.
Amongst the companies, Honda Atlas Cars (HCAR) reported the highest decline in car sales by 27% MoM. Indus Motor (INDU) sales declined by 20% MoM and Pak Suzuki (PSMC) sales dropped by 15% MoM in Apr-2021.
Hyundai Nishat’s sales increased by 24% MoM primarily driven by Elantra sales, which were up by 509% MoM among car for sales in Pakistan.
Lucky Motor Corporation sold in the range of 1,800 to 2,000 units, as per our channel checks.
Atlas Honda (ATLH) recorded motorbike sales of 115,001 units in Apr-2021, down 8% MoM. In 10MFY21, sales for cars in Pakistan have increased by 39% YoY.
Tractor sales in Mar-2021 are down by 19% MoM. Millat Tractors (MTL) sales declined by 9% MoM, while Al-Ghazi Tractors (AGTL) sales dropped by 36% MoM.
We are Over-Weight on Pak Automobiles with Buy ratings on PSMC, INDU, and MTL, Topline Research said in a report.
The Japanese carmakers had maintained a monopoly on the Pakistani market for a long. However, the previous government of PML-N had introduced a policy for new entrants to break the monopoly of Japanese carmakers.
These automakers used to receive their own money from the clients for sales of cars in Pakistan that had upset the government. However, following the entry of new car makers, the same practice continues. Even, new carmakers are also charging their ‘own’ money from the consumers. The customers were still facing problems in the delivery of cars in time.
