Cars sale in Pakistan goes down
Sales of cars in Pakistan continues its downward trajectory.
LAHORE (Web Desk) - Sales of cars in Pakistan continues its downward trajectory and witnessed a decline of 39% Year over Year (YoY) in Sep 2019 that is 41% decrease in 1st quarter of FY20.
This is primarily attributable to
1) higher auto prices post rupee devaluation
2) higher interest rates for auto financing
3) overall economic slowdown affecting disposable income.
HCAR remained major contributor to industry decline with down 68% YoY followed by INDU -57% YoY & PSMC -18% YoY for the month of Sep-19.
Indus Motors (INDU) has reported a decline of 57% YoY for Sep-19.
The significant attrition in the volumes is mainly due to a 59% YoY decline in its Corolla variant, which historically has supported INDU’s overall volumes & has been consumers preferred choice in Sedan category.
Similary, Fortuner and Hilux sales declined by 43% and 32% YoY, respectively.
Honda Cars (HCAR) sales fell 68% YoY during Sep-19 with highest decline among its peers. Sales of City & Civic fell by 66% YoY amid significant increase in their prices.
BR-V continues to underperform as its sales were down significantly by 82% YoY.
Pak Suzuki (PSMC) has recorded a 18% YoY decline in September.
The decline in sales was led by Wagon-R which is down 74% YoY mainly due to shift of customers interest towards Alto and recently launched Picanto by Kia Lucky Motors.
Alto recorded sales of 4,924 units for September, highest monthly sales since its launch.
Although PSMC has recently raised prices of Alto by Rs 70,000 – 85,000 but being an entry segment car we believe it to perform well in upcoming months as well.
Bolan & Ravi variants are down 67% & 73% YoY, respectively. Swift sales were down by 59% YoY compared to the same period last year.
Atlas Honda (ATLH) sales witnessed a decline of 22% YoY as sales clocked in at 75,007 units, lowest in last 26 months.
