KARACHI: Pakistan Automotive Manufacturers Association (PAMA) published monthly automobile sales data for January 2020 wherein passenger car (PC) sales plummeted 48%YoY to 10,095 units whereas on a MoM basis, PC volumes remained flat (+1%).
Seasonal factors such as buying at the start of new year in order to improve re-sale value provided much needed support to pressured volumes, a report issued by Pearl Securities noted.
However, consistent with previous trend, Bus sales were down 22%YoY and 16%MoM to only 51 units while sale volumes for Pickup vehicles recorded decline of 46%YoY and 31%MoM to 1,324 units.
Truck/SUV sales plunged 28%YoY and 36%YoY, however on a MoM basis, demand for the vehicles improved 54%/145% with 386/482 units sold during January 2020.
Overall auto sales contracted 47%YoY to 12,338 units whereas on a MoM basis, volumes remained flat (-1%) during January 2020.
On aggregate basis, automobile sales registered 44%YoY decline to 81,912 units during 7MFY20 (July 2019 to January 2020). Segment wise analysis reveals that PC, Truck, Bus, SUV and Pickup sales slumped 44%YoY, 45%YoY, 31%YoY, 50%YoY and 47%YoY, respectively. “1300cc and above” car volumes fell 59%YoY to 25,264 units while “1000cc” category also depicted notable decline (-58%YoY) with 13,423 units sold during 7MFY20.
However, “Below 1000cc” car sales, owing to impressive Alto volumes, incremented 4%YoY as total sales arrived at 30,505 units.
Pak Suzuki Motor Company (PSMC)’s sales for the month of January 2020 clocked in at 5,555 units, depicting a hefty decline of 53%YoY and 36%MoM. Consistent with previous months, apart from Alto, sales of all other models remained under pressure during the month
Indus Motor Company (Toyota) witnessed notable decline of 36%YoY to 4,022 units with demand for Corolla, Fortuner, Hilux plummeting 36%YoY, 42%YoY, 33%YoY during January 2020. However, on a MoM basis, overall volumes improved 72% with Corolla, Fortuner and Hilux recording 65%MoM, 97%MoM and 150%MoM accretion to 3,445, 150 and 427 units January 2020.
Honda Cars continued to record hefty fall (-51%YoY) at 2,210 units sold during the month as sale volumes for Civic & City/BRV fell 53%YoY, 33%YoY arriving at 1,878 and 332 units as compared to 4,026 and 492 units sold during the same month last year. However on a MoM basis, overall volumes exhibited notable rise of 120% with volumes for Civic & City/BR-V improving 112% and 174% during January 2020.
“Going forward, with no respite in sight regarding prevailing challenges faced by the industry such as relentless documentation drive, significantly higher pricing, economic slow-down and surging inflationary levels leading to both decline in disposable income, thereby impairing purchasing power of customers, as well as higher interest rates, we expect auto-demand to remain under pressure”.