Car, LCV sales record 17 percent decline: PAMA
Car sales in five months of the current fiscal year decreased by four percent to 101,000 units
(Dunya News) – Pakistan Automotive Manufacturers Association (PAMA) said in a data, that total passenger car and LCV sales for November 2018 clocked-in at 17,442 units, recording a decline of 17 percent compared with same period last year.
The month of month, i.e. compared with October recorded a decline of 30 percent which was expected on account of year end effect along with regulatory changes playing its part said Faizul Sultan research analyst from BMA Capital Management.
Cumulatively, car sales in five months of the current fiscal year decreased by four percent to 101,000 units, led by weak demand dynamics primarily in 800-1000cc segment post steep price increase of 9 percent since January 2018.
Indus Motor maker of Toyota cars remained the top performer followed by Honda Car depicting growth of 7 percent and 2 percent, respectively during July to November 2018 period. Whereas, Pakistan Suzuki Motors registered decline of 11 percent due to price elastic demand of 800-1000cc variants and effect of regulatory changes for the sector, Faiz said.
On standalone basis, demand for Corolla variant looks stable comparatively to other variants in 1300-1800cc segment. In small to mid-sized segment, Cultus and WagonR continue to do well on the back of demand from fleet requirement of ride hailing app such as Careem and Uber. On the other hand, sales of BR-V continued to deteriorate by 43 percent and 76 percent on month on month basis and year on year basis.
Tractors sales remained weak during the month where volumes declined 33 percent on year on year basis, registering cumulative decline of 13 percent in five
months ended November 30 on the back of weak agriculture activity. Millat Tractors continued to outperform on cumulative basis with sales down by 4 percent as compare to 13 percent decline in industry.
Trucks and buses sales trend continue to normalize with sales depicting a decline of 3 percent and five percent respectively on month and month basis and year on year basis. On cumulative basis, sales dipped by 14 percent in five months of the current fiscal year on the back slowdown in economic activity.
According to an analyst from Shajar Capital Sharp decline in the sector was on the back of 1) seasonal effect of year-end quarter where customers tend to lower purchases in an anticipation of a new model next year, 2) restriction on non-filers to purchase new cars 3) continuous rise in car prices since Jan-18 on the back of devaluation of PKR (~17% in 11MCY18) and 4) high interest rate environment leading to a slowdown in demand.
