Car Sales in July 2024 Slump by 32% Month-on-Month

Staff Report: The provisional auto sales figures indicate that the sales of four leading car assemblers are estimated to decrease by 32% month-on-month (MoM) to 7,980 units in July 2024. The monthly decline is primarily attributed to the drop in sales of PSMC and INDU, caused by factory shutdowns due to supply chain issues.Economic Survey 2023-24: Industrial and Services Sectors Show Growth

On the flip side, yearly sales are up 80% year-on-year (YoY) during July 2024, owing to a low base effect and the absence of import restrictions.

Pak Suzuki (PSMC) sales are expected to clock in at 4,500 units, down 30% MoM. We believe lower sales are primarily driven by restricted production due to supply chain issues. Sales of all models are expected to decline except for the Ravi.

Honda Atlas Cars (HCAR) sales are anticipated to reach 940 units, a seven-month low, down 7% MoM during July 2024. The decrease is mainly due to lower sales of the Civic and City models, which are facing stiff competition from hybrid SUVs. This is also reflected in moderate yearly growth, up 20% YoY.

Similarly, Indus Motors (INDU) is expected to report 1,660 units sold, down 44% MoM in July 2024. Interestingly, the decline in INDU sales is led by the Corolla Cross, which is down 78% MoM, marking its lowest number since its launch in December 2023.