Karachi December 12 2022: As per the latest data shared by Pakistan Automotive Manufacturers Association (PAMA), car sales recovered by 39 percent to 15,444 units during the month of November 2022 when compared with sales of previous month as State Bank of Pakistan start clearing LCs.
Moreover, car sales are also shown increase of 1 percent in November when compared with the corresponding month last year.
During the first five months of this fiscal year, which runs from July to June, car sales are lower by 39 percent to 55,144 units when compared with corresponding period last year sales of 90,303 units, as skyrocketing car prices suppressed demand amid higher interest rates and import restrictions hurt production even before the full impact of the devastating floods
The State Bank of Pakistan (SBP) has introduced a mechanism for prior approval for import under HS code 8703 category (including CI(Ds) vide circular No.09 of 2022 dated May 20, 2022. These restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels.
Pak Suzuki Chairman Kinjo is optimistic that foreign exchange situation of the country will improve considering the positive developments with regards to external flows.
Ravi sales recovered the most among Pak Suzuki variants by 83 percent month on month to 541 units from 295 units in October 2022. While Swift sales were improved by 66 percent month on month to 2,246 units during November 2022 from 1,350 units in October 2022. Sales of Alto also inclined by 74 percent to 7,255 units in November 2022 compared to 4,181 units in October 2022. Overall sales of Pak Suzuki Motor increased by 55 percent month on month to 12,400 units during November 2022.
Combined sales of Corolla and Yaris increased by 5 percent month on month to 1,933 units during November 2022. Sales of Fortuner and Hilux decreased by 15 percent month on month to 1,309 units. Overall sales of Indus Motor Company reduced by 4 percent month on month to 3,242 units.
Indus Motor Chief Executive Officer Ali Asghar Abbass Jamali said, ”Continuing restrictions on CKD imports by State Bank of Pakistan and decline in demand due to lower purchasing power of customers and impact of the floods, may continue to impact the volumes and sales of auto sector going forward. In addition, during the second quarter of the fiscal year, we are likely to observe a reduction in sales as customers seek to defer purchase of cars and opt for a new-year registration.”
Sales of Civic and City increased by 10 percent month on month to 1,509 units when compared to the sales of October 2022. Honda sold 464 units of BRV during November 2022, which is up by 759 percent month on month. Overall sales of Honda Cars increased by 38 percent month on month to 1,973 units.
However, Hyundai sold 441 units across all variants during November 2022, which is lower by 9 percent compared to previous month.
Full recovery in automobile sales may be hurt by catastrophic floods that inundated about a third of the country in recent weeks, killing about 1,400 people and causing losses worth about $30 billion.
