ISLAMABAD – Pakistan Auto Industry faces a worst blow as the car sales takea massive dip in 2019.
Pakistan’s auto industry sold 10,222 units in the second month of thefiscal year 2019-20 (FY20), down 42pc on a yearly basis, as the demandcontinued to suffer following the exorbitant increase in car prices(inclusive of the revised FED) announced in July.
According to details, August was the slowest month for auto sales since Dec2012. However, August had lower working days due to Eid holidays, which mayhave further contributed to this decline.
Reminiscent to the previous month, the sales of Honda Atlas Cars (HCAR)suffered the most, declining by 67pc in Aug 2019, as compared to the samemonth last year. HCAR is more vulnerable to interest rates owing to itshigher mix of auto-financing sales.
On the other hand, Pak Suzuki (PSMC) fared better than its peers. The saleswere down by 24pc in Aug 2019 as compared to Aug 2018 mainly due to thepresence of its latest model, Alto. Other than Alto, sales were down by63pc.
The unit sales of Indus Motors (INDU) contracted by 57pc in Aug 2019 withmajor drag coming from the sales of Corolla. As per media reports, INDUwould likely replace Corolla Gli/Xli with its Yaris sedans.
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Meanwhile, tractor sales dipped by 37pc on a yearly basis owing to poorfarmer- related policies and higher prices.
According to Pakistan Automotive Manufacturers Association (PAMA), the saleof 2-3 wheelers dropped 10pc on a yearly basis but recovered 13pc on amonthly basis.
Experts believe that the sharp volumetric decline in sales may continueuntil the end of this year.
