KARACHI: Car sales fell six percent year-on-year to 39,006 units in the first two months of the current fiscal year of 2018/19, industry data showed on Tuesday as condition of returns filing for auto buying discouraged the sale.
Total sales of cars, including jeeps, were recorded at 41,671 units during the corresponding period a year earlier.
Analyst Daniyal Adil at Topline Securities said it was the first time that auto sales declined in the first two months of fiscal year since FY2015, excluding taxi scheme.
Adil attributed slowdown in sales to lower number of working days due to Eid-ul-Azha, deteriorating economic environment, price hikes and impact of law requiring car purchasers to be filers.
In August, auto sales fell 20 percent year-on-year and decreased 17 percent month-on-month to 17,662 units in August, “showing signs of much anticipated demand contraction in the auto sector”.
“We expect this slowdown to continue in coming months as rising interest rates and rupee depreciation take toll on auto sector, with former due to likely decline in consumer financing and latter on further price hikes,” Adil said.
Indus Motors performed the best amongst its peers, but the company still recorded nine percent year-on-year decline in sales in August.
In July-August, the company sold 10,486 units, up three percent year-on-year. Hilux led its sales with robust growth of 23 percent.
Sales of Corolla and Fortuner dipped 12 and 23 percent year-on-year, respectively, during the two months period.
Honda witnessed considerable decline with its sales down 15 percent year-on-year to 3,961 units in August. Sales declined three percent year-on-year in the July-August period. Sales of Civic and City fell to 8,078 units during the two months from 7,765 units in the corresponding period a year earlier.
Pak Suzuki Motor Company experienced significant decline in sales, with volumes down 27 percent year-on-year to 8,683 units in August. Major declines of 50 percent and 42 percent were witnessed in Ravi and Mehran, respectively, while Wagon-R was still able to maintain growth (11 percent year-on-year). Sales of Pak Suzuki declined 12 percent year-on-year in July-August 2018/19.
Pakistan Automotive Manufacturers Association’s (PAMA) data showed that sales of trucks increased to 1,199 units in the July-August period compared to 1,478 units in the corresponding period a year earlier. Total 217 buses were sold during the two months as against 175 units in the corresponding period a year earlier. Production of trucks and buses fell to 1,595 units in the two months period compared to 1,737 units in the corresponding period a year earlier.
Sales of farm tractors fell to 7,913 in the July-August period from 9,757 in the comparable period. Total 8,899 farm tractors were produced in the July-August period compared to 10,280 units in the corresponding period a year ago.
PAMA data further showed that sales of motorcycles and three-wheelers fell to 290,907 units compared to 324,050 units in the same period a year ago.
Production of motorcycles and three-wheelers also decreased to 291,548 units in the two months period compared with 323,873 units in the corresponding period a year earlier.