Car Sales in Pakistan face a Massive Drop of 59% in July 2022

Car sales in Pakistan are down by 59 per cent in July 2022.

The country has witnessed a decline in sales due to the poor purchasing power of its people in the wake of high inflation.

The car sales in July 2022 stood at 14,000 units, including non-PAMA, which was down by 59 percent monthly.

Why do car sales in Pakistan suffer?

Pakistani car sales, including non-PAMA members, clocked in at 14,000 units, down 59% month-on-month due to production issues.

Higher car prices have also resulted in lower purchasing power of consumers and fewer working days due to the Eid ul Adha holidays in July 2022. 

Car sales in Pakistan were down by 52 percent yearly (YoY).

It is also down by 52% YoY.

 Indus Motors (INDU) posted a 62% month-on-month (MoM) basis decline to 2,375 units, primarily due to nonproduction days in July 2022. 

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Similarly, Hyundai sales were down by 89% MoM to 201 units from 1,871 units in Jun-2022.

PSMC sales were down 58% MoM in July of 2022. All company variants reported a decline in the range of 57-95% on an MoM basis, except for Alto, where sales increased to 4,618 units from 1,216 units in Jun-2022, mainly due to the low base effect. 

 Honda Atlas Car (HCAR) also recorded a decline of 35% MoM to 2,537 units in July-2022, led by a decrease in sales of City & Civic by 30% MoM.

 Amongst tractors, Millat Tractors (MTL) recorded a decline of 60% MoM and 65% YoY to 1,011 units. Al-Ghazi Tractors (AGTL) recorded sales of 1,243 units, down 48% MoM and 12% YoY.

In Pakistan, bike sales were down by 33% MoM and 34% YoY in July 2022. Atlas Honda (ATLH) recorded sales of 80,000 units, down 28% MoM and 20% YoY.

Truck and bus sales were down 22% MoM and 37% YoY to 379 units in July-2022, primarily due to transportation activity drops. It has been amid a slowdown in the overall economy.