ISLAMABAD – Pakistan Automobile sector faces another setback as thevehicles sale register another big decline.
Car sales continued its downslide; recording a decline of 56pc in Oct 2019when compared to the same month last year. Cumulatively, car sales dropped46pc during the first four months of the fiscal year 2019-20 (4MFY20) whencompared with 4MFY19.
The fall is primarily attributable to the government’s recent drive todocument the economy, higher auto prices post rupee devaluation, higherinterest rates for auto financing and overall economic slowdown.
Indus Motors (INDU) has surprisingly reported an increase in volumetricsales; up by 18pc when compared with Sept 2019 mainly due to 10pc and 86pcincrease in the sale of its Corolla and Hilux variants. Experts believethis was due to different waiver schemes offered by the company incollaboration with commercial banks.
However, INDU continues to report a decline on a yearly basis; down by 65pcwhen compared with Sept 2018.
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Honda Cars (HCAR) sales fell 72pc during Oct 19, highest monthly decline inthe last 7.5 years. Sales of City and Civic fell by 77pc amid a surge intheir prices. BR-V also reported a decline of 33pc. However, it reported asignificant gain on a monthly basis.
Pak Suzuki (PSMC) recorded a 48pc YoY decline in Oct, highest in the last7.3 years. The decline was led by Wagon-R and Cultus, sales of which weredown 84pc and 51pc mainly due to the recent shift in customer interesttowards Alto and newly-launched Picanto by Kia Lucky Motors.
