Pakistan auto sector is in trouble
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Pakistan car sales including sales of Non-PAMA members clocked in at 18000 units down 8 per cent Month-on-Month basis primarily due to non-availability of CKD parts amid LCs issues
KARACHI: Pakistan’s Auto Industry is in trouble. Pak Suzuki, Indus Motor and Millat Trackers plants are shut down for last 21 days owing inventories shortage and dearth of greenback in the interbank market.
However, the Pakistan Automotive Manufacturers Association (PAMA) Wednesday released the data regarding car sales.
Pakistan car sales including sales of Non-PAMA members clocked in at 18000 units down 8 per cent Month-on-Month basis primarily due to non-availability of CKD parts amid LC issues, which led to non- production days, and year-end phenomenon where consumers generally delay their purchases until the new year.
On a year-on-year basis, weak demand dynamics was again evident from a 38 per cent fall in sales in December 2022, also taking first half 2022-23 decline to 38 per cent. This is primarily attributable to escalating car prices, expensive auto financing, and low purchasing power of consumers.
Honda Car (HCAR) reported an increase of 5 per cent MoM to 2,079 units in December 2022 whereas Indus Motors (INDU) reported decline of 13 per cent MoM to 2,823 units in Dec-2022 due to non-production days.
Hyundai sales up 37 per cent MoM where Tuscon was up 67 per cent MoM and Elantra was up 41 per cent MoM. Pak Suzuki reported a decline of 8 per cent MoM to 11,342 units only.
Amongst Tractors, Millat Tractors (MTL) recorded decline of 55 per cent MoM to 501 units in Dec-2022 primarily due to plant closure.
However, Al Ghazi Tractors (AGTL) recorded increase in sales to 514 units in Dec-2022. This takes total tractor industry sales to 11,513 units in first half 2022-23 down 57 per cent YoY due to floods, plants shutdown, lower consumer buying power and higher prices.
Pakistan bike sales were down 6 per cent MoM and 27 per cent YoY in December 2022. Atlas Honda (ATLH) recorded sales of 85000 units, down 8 per cent MoM and 26 per cent YoY.
Trucks and Buses sales were down 16 per cent MoM and 15 per cent YoY to 286 units in Dec-2022. This takes first half 2022-23 sales to 1,947 units in 1HFY23 down 36% YoY primarily due to drop in transportation activity and slowdown in overall economy.
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