KARACHI:
Pakistan witnessed a glimmer of hope within the auto sector as vehicle gross sales in Could 2023 recorded a month-on-month restoration of 19%. Nevertheless, it’s essential to notice that this enchancment comes with a staggering year-on-year decline of 77%. The Pakistan Automotive Producers Affiliation (PAMA) report revealed that roughly 5.Three thousand items have been offered throughout this era.
The rebound in month-to-month gross sales could be attributed to the spectacular efficiency of PSMC, which skilled a exceptional 101% enhance, as reported by Muhammad Abrar of Arif Habib Restricted. Nevertheless, the YoY dip could be attributed to the adversarial affect of rising inflation, which has considerably affected shopper affordability.
Moreover, the car sector continues to face challenges resulting from unplanned plant shutdowns brought on by import restrictions imposed by the State Financial institution of Pakistan (SBP), he stated. Notably, HCAR’s manufacturing plant was shut down for half of Could. Specialists anticipate that vehicle gross sales will stay below strain all through the present calendar 12 months.
Together with non-PAMA members, whole automotive gross sales reached 6,200, indicating an 18% MoM enhance, in keeping with auto analyst Sunny Kumar from Topline Securities. Nevertheless, aside from Pak Suzuki (PSMC), all different firms recorded a decline on a MoM foundation because of the non-availability of Utterly Knocked Down (CKD) elements.
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These gross sales figures carry the overall gross sales for the primary 11 months of fiscal 12 months 2023 to 120,158 items, reflecting a major 52% YoY lower. This decline can primarily be attributed to the non-availability of CKDs, surging automotive costs, costly auto financing, and the low buying energy of shoppers.
PSMC skilled substantial progress of 101% MoM, promoting 2,958 items in Could 2023. This surge was pushed by elevated gross sales of Alto (132% enhance), Swift (129% enhance), and Cultus (59% enhance).
The supply of CKD elements and a low base contributed to this notable upswing.
Nevertheless, Honda Atlas Automobile (HCAR) suffered the very best decline of 58% MoM, with solely 87 items offered. Hyundai additionally skilled a decline of 31% MoM with Tuscon gross sales down 38% and Elantra gross sales down 42% in Could 2023.
Indus Motors (INDU) recorded a decline of 12% MoM, promoting 1,718 items in Could 2023 in comparison with 1,948 items in April 2023.
Within the tractor section, Millat Tractors (MTL) noticed a 25% MoM enhance, promoting 1,505 items in Could 2023. Al Ghazi Tractors (AGTL) maintained flat gross sales of two,003 items. Nevertheless, the tractor business’s whole gross sales for the primary 11 months of fiscal 12 months 2023 stood at 27,952 items, indicating a 46% YoY decline resulting from elements resembling floods, plant shutdowns, decrease shopper shopping for energy, and better costs.
Motorbike gross sales in Pakistan confirmed an 18% MoM enhance in Could 2023. Atlas Honda (ATLH) reported gross sales of 87,000 items, representing a 19% MoM enhance however a 24% YoY decline.
Truck and bus gross sales skilled a marginal 1% MoM enhance however a major 69% YoY decline, with 153 items offered in Could 2023. The cumulative gross sales for the primary 11 months of fiscal 12 months 2023 reached 3,687 items, down 38% YoY. This decline could be primarily attributed to a drop in transportation exercise and an general financial slowdown, stated Kumar.