Car sales plunge 36 percent in October

KARACHI: Car sales (PAMA members) plunged 36 percent in October 2022 as high borrowing costs, tight credit and a slowing economy dragged down demand, an industry body said on Friday.

The sales increased 21 percent month-on-month in October and analysts are of the view that sales might further improve in coming months as availability of raw materials has improved after importers are allowed to open higher value of LCs.

Passenger car sales fell 47 percent in the first four months of FY23 to 39,700 against 74,952 units sold in the same period last year.

Sales of all vehicles including passenger cars, trucks, jeeps, pick-ups, tractors and two-wheelers as well as three-wheelers dropped during the period.

According to data released by Pakistan Automotive Manufacturers Association (PAMA), passenger car sales (PAMA member cars) decreased by 36 percent to 11,129 units in October 22 compared with 17,413 units sold during the same month last year.

During the od, sales of 1300 cc and above cars sales were recorded at 4,771 units, down 45 percent compared with the same period last year’s sales of 8,619 units.

Sales of 1,000 cc cars recorded at 1,897 units, (1,129 units of Suzuki Cultus and 768 units of Suzuki WagonR) against 2,631 units in the same month last year.

Below 1,000 cc vehicles recorded a sale of 4,461 units against 6,163 units last year.

Buses and trucks saw a fall in sales to 326 units in October from 484 units in October 2021.

The sale of jeeps and pick-ups fell to 2,240 units from 3,611 units sold during the same period last year. Sales of tractors dropped to 1,890 units from 5,361 units during October last year.

The sale of rickshaws and motorbikes decreased to 113,706 units in October 22 against 178,299 units in the same period last year.

One analyst said that the LC limit was increased to $100,000 from $50,000, which will enhance working days at the car manufacturers.

However, he said that new investment can only be attracted once there is political stability in the country.