Car sales decrease after higher prices, interest rates in July

• Sales of cars reduced by 64% to 3,702 units in July 2023.
• 1,694 units of cars powered 1300cc and above sold.
• 1000cc cars recorded sales of 422 units only.

KARACHI: The sale of cars in the country has seen a 64% reduction in July as compared to last year after higher interest rates and prices discouraged buyers, The News reported quoting figures shown in the industry data.

Except for tractors, the sale of all vehicles including trucks, passenger cars, pick-ups, jeeps, three-wheelers, and two-wheelers have all witnessed a drop during the period.

The Pakistan Automotive Manufacturers Association (PAMA) data showed that the sale of passenger cars (PAMA member cars) reduced by 64% to 3,702 units in July 2023, as compared to the 10,378 units sold during the same month in 2022.

Sunny Kumar, an analyst at Topline Securities, said escalating car prices, expensive auto financing, and the low purchasing power of consumers were among the primary reasons for the decline in sales.

During this period, sales of cars powered 1300cc and above were recorded at 1,694 units only, which was 62% lesser than sales the 4,464 units sold in the same period last year.

This year's sales included 208 units of Honda Civic and City, 249 units of Suzuki Swift, and 1,067 units of Toyota Corolla and Toyota Yaris, 80 units of Hyundai Elantra and 90 units of Sonata.

During this period, 1000cc cars recorded sales of 422 units only, which included 177 units of Suzuki Cultus and 245 units of Suzuki WagonR.

Below 1000cc vehicles recorded a sale of 1,586 units, including 146 units of Suzuki Bolan and 1,440 units of Suzuki Alto.

Buses and trucks saw a decrease to 195 units in July from 274 units in the same month last year. The sale of jeeps and pick-ups decreased to 1,390 units from 1,547 units sold during the same period last year.

However, sales of tractors increased to 2,678 units from 2,254 units in July last year.

The sale of rickshaws and motorbikes decreased to 73,588 units during July 2023 against 96,421 units in the same period last year.

Indus Motors (INDU) posted the highest decline of 26% MoM to 1,368 units in July 2023 led by a 65% MoM decline in sales of Fortuner and Hilux.

Pak Suzuki Motor Company (PSMC) recorded a decline of 19% MoM to 2,444 units in July 2023 led by a decline in sales of Bolan (-44% MoM), and Alto (-25% MoM).

However, Honda Atlas Car (HCAR) recorded an increase of 61% MoM to 494 units in July 2023 mainly due to the low base of last month.

Hyundai sales were also up 2% MoM, whereas Tuscon sales were up 5% MoM to 328 units in July. 

Amongst Tractors, Millat Tractors (MTL) recorded a decline of 22% MoM to 1,656 units in July 2023, while Al-Ghazi Tractors (AGTL) recorded sales of 1,022 units, up 20% MoM.

Sales of trucks and buses were up 31% MoM, and down 29% YoY to 195 units in the month under review. 

Pakistan’s bike sales were down 11% MoM and 24% YoY in July 2023. Atlas Honda (ATLH) recorded sales of 62,000 units, down 17% MoM and 23% YoY. Higher bike prices and the low purchasing power of consumers are the primary reasons for the decline in sales.