Car sales see 30% decline YoY in Sept amid high prices, interest rates

• PAMA says 6,410 cars sold in Sept 2023. 
• In Sept 2022, 9,213 units were sold.
• Sales rise 8% compared to August.

KARACHI: Car sales saw a 30% decline year-on-year in September amid high prices and interest rates, The News reported citing an industry data body.

The Pakistan Automotive Manufacturers Association (PAMA) said 6,410 cars were sold in September 2023 compared to the 9,213 sold in the same month last year. However, sales rose 8% in September compared to August due to the lifting of import restrictions.

For the first quarter of the fiscal year 2023/24, passenger car sales dropped 44% to 16,021 units, compared with 28,571 units in the same period last year.

Sales of 1,300cc and above cars declined by 38% to reach 2,939 units, last year sales of such cars was 4,715 units. However, it increased by 27% against 2,310 units in August.

In September, 691 units of 1,000cc were sold compared to 1,517 units sold during the same month last year. Below 1,000cc vehicles recorded a sale of 2,780 units, down 7% against 2,981 units of last year. This category of cars also recorded a month-on-month decline against 2,935 units in August.

At least 185 units of buses and trucks were sold in September 2023 compared to the 378 units sold in the same month last year. Sales increased on a month-on-month basis against 167 units in August.

On the other hand, the sale of jeeps and pick-ups declined to 1,902 units from 2,075 units sold during the same period last year. But like all other categories, it saw an increase on a month-on-month basis. Sales of tractors rose to 5,445 units from 2,149 units in September last year.

The sale of rickshaws and motorbikes increased to 107,084 units during September 23 against 99,581 units in the same period last year.

Topline Securities Analyst Sunny Kumar credited the monthly increase in car sales to the easing of import issues for completely knocked down (CKD) kits on which the car manufacturers rely for the assembly of cars.

“However, escalating car prices, expensive auto financing and the low purchasing power of consumers are among the primary reasons for the decline in year-on-year sales,” he added.

Among manufacturers, Honda Atlas Car (HCAR) recorded the highest increase of 99% month-on-month, as it sold 1,342 units in Sep-2023 but it was largely due to the low base the company had the previous month when it was only able to sell 674 units.

Pak Suzuki (PSMC) was the only one that recorded a decline of 1% month-on-month to 4,234 units in Sep-2023 led by 8% month-on-month decline in sales of Alto. Other variants including Ravi, Bolan and Cultus recorded an increase of 58% month-on-month, 38% month-on-month and 9% month-on-month, respectively. Swift and Wagon-R sales remain flat month-on-month at 506 and 359 units in Sep-2023.