Pakistan Automobile Sector faces another blow
*ISLAMABAD - Pakistan auto sector giant, Honda Atlas Cars Limited has reported a loss of Rs41.25 million during the third quarter that ended on December 2019.*
As per the financial results published by Honda Atlas, the car maker reported sales of Rs9.864 billion from October to December 2019, as compared to Rs21.292bn recorded in the same period last year, showing a Year on Year sales decline by over 53 percent.
Dismal demand and price increase were the main factors behind the plunge in sales, which has been a trend in the overall auto sector of Pakistan.
The company's gross profit in the third quarter in 2019 stood at Rs646.299 million as compared to Rs1.628bn recorded in the same period last year, witnessing a plunge of over 60pc.
Earlier, it was learnt that car sales plunged by 38 percent on the back in the month of December. As per the data released by Pakistan Automotive Manufacturers Association (PAMA) for the first half of Fiscal Year (FY) 2020, the sales of passenger cars stood at 9,987 units in the last month of the previous year, as compared to 16,141 units sold in same period in 2018.
Meanwhile, car sales plunged by 43pc to 59,097 units in the last six months of 2019, as compared to 104,038 units sold in the same period back in 2018.