Car sales at 32,000 units in Dec-2021, up 33% MoM

KARACHI: Pakistan car sales (including sales of Non-PAMA members) clocked in at 32,000 units, which is up 33% Month on Month (MoM) in Dec 2021. This is much higher MoM growth witnessed in December compared to historical averages.

Car sales generally slow down in December as people wait for the start of new-year for the purchase of vehicles with new-year registrations.

This time around, strong MoM sales increase was due to pre-buying on expectations of price increase by auto-assemblers. Pakistan car sales as reported by PAMA were up 96 per cent YoY and 46 per cent MoM.

Pak Suzuki (PSMC) and Honda Atlas Car (HCAR) posted strong numbers registering an increase of 82 per cent and 56 per cent MoM rise, respectively.

Anticipation of price increase, pent up demand due to production issues for PSMC, and strong Honda City sales drove the overall sales of these companies.

Indus Motors (INDU) sales were down 2% MoM in Dec 2021 due to lower Fortuner & Hilux Sales.

In 1HFY22, Pakistan auto sales are up 70% led by macro recovery and single digit interest rates.

Pakistan bike sales were down 10% YoY and 15% MoM in Dec 2021. In 1HFY22, bike sales remained strong, up 18% YoY.

Trucks & Buses sales were down 2% YoY and -37% MoM in Dec 2021 while it was up 57% YoY in 1HFY22 led by increased transportation activity.

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