Car sales decline 44% in November 2019

KARACHI: Pakistan car sales continued to decline 44 per cent YoY in November 2019, taking cumulative attrition in five months fiscal year 2019-20 to 45 per cent YoY.

This decline is primarily attributable to higher auto prices post rupee devaluation and higher interest rates for auto financing.

Indus Motors (INDU) reported second consecutive MoM increase in volumetric sales, up by 6 per cent MoM mainly due to 10 per cent MoM & 8 per cent MoM increase in its Corolla & Fortuner variants, respectively.

This increase in volumes is on the back of aggressive promotions, discounts and different waiver schemes offered by company in collaboration with commercial banks. However, INDU continues to report a decline on YoY basis, down by 52 per cent YoY in November 2019.

Honda Cars (HCAR) sales fell 62 per cent YoY during November 2019, where combined sales of City and  Civic fell by 66 per cent YoY, however it recorded increase of 4 per cent MoM. BR-V reported a decline of 24 per cent YoY & 34 per cent MoM.

Pak Suzuki (PSMC) recorded a 31 per cent YoY decline in November 2019, The decline in sales was led by Wagon-R & Cultus, which is down 70 per cent YoY and 41 per cent YoY respectively, Furthermore Alto has also depicted monthly decline of 27 per cent YoY which is highest since its launch.

Bolan & Ravi variants are down 58 per cent and 56 per cent YoY, respectively. Swift sales were down by 42 per cent YoY.

The market analysts expect recovery in car volumes from start of 2020 as auto volumes will likely bottom out in December 2019.

Atlas Honda (ATLH) motorcycle sales witnessed an increase of 6 per cent YoY as sales clocked in at 95,009 units, however it recorded a decline of 5 per cent MoM.

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