Karachi November 12 2022: As per the latest data shared by Pakistan Automotive Manufacturers Association (PAMA), car sales recovered by 21 percent to 11,129 units during the month of October 2022 when compared with sales of previous month as State Bank of Pakistan start clearing LCs.
However, car sales are still down significantly by 36 percent in October when compared with the corresponding month last year as skyrocketing car prices suppressed demand amid higher interest rates and import restrictions hurt production even before the full impact of the devastating floods.
During the first four months of this fiscal year, which runs from July to June, car sales are lower by 47 percent to 39,700 units when compared with corresponding period last year sales of 74,952 units.
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.
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.”
Pak Suzuki Chairman Kinjo is optimistic that foreign exchange situation of the country will improve considering the positive developments with regards to external flows.
Alto’s sales recovered the most among Pak Suzuki variants by 76 percent month on month to 4,181 units from 2,372 units in September 2022. While Cultus sales were improved by 50 percent month on month to 1,129 units during October 2022 from 751 units in September 2022. Sales of Ravi also inclined by 20 percent to 295 units in October 2022 compared to 245 units in September 2022. Overall sales of Pak Suzuki Motor increased by 33 percent month on month to 8,003 units during October 2022.
Combined sales of Corolla and Yaris increased by 3 percent month on month to 1,838 units during October 2022. Sales of Fortuner and Hilux increased phenomenally by 84 percent month on month to 1,536 units. Overall sales of Indus Motor Company recovered by 29 percent month on month to 3,374 units.
Sales of Civic and City increased by 14 percent month on month to 1,371 units when compared to the sales of September 2022. Honda sold 54 units of BRV during October 2022, which is down by 32 percent month on month. Overall sales of Honda Cars increased by 11 percent month on month to 1,425 units.
However, Hyundai sold 486 units across all variants during Ocotober 2022, which is lower by 50 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.