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Car sales plunge 41pc in August

According to data released by Pakistan Automotive Manufacturers Association (PAMA), passenger car sales dropped 41 percent to only 10,636 in August from 17,977 units sold during the same period last year.

By Shahid Shah
September 13, 2019

KARACHI: Passenger car sales plunged 41 percent to 10,636 units in August 2019 as compared to the same period last year owing to an increase in the prices and Eid holidays, data showed on Thursday.

More: Automobile sector stares at 40-60pc skid in sales, 150,000 job cuts

According to data released by Pakistan Automotive Manufacturers Association (PAMA), passenger car sales dropped 41 percent to only 10,636 in August from 17,977 units sold during the same period last year.

During the first two months of FY20, passenger cars sales dropped by 31 percent to 27,108 units compared with 39,354 units sold during the same period last year. August sales were down by 35 percent to 16,472 units compared to July.

With exception to Suzuki’s new Alto that was not produced during the same period last year, almost all variants of four-wheeler and above vehicles have recorded a decline in sales.

Analysts are of the view that an increase in the prices of almost all models in FY19 had major impact on sales. Besides, post budget impacts restricted citizens from buying new cars.

One analyst said that compared with July 2019, August 2019 had fewer working days because of long Eid holidays, which was also one reason behind a decline in the number of sales.

With the imposition of federal excise duty on all vehicles, the prices increased further, resulting in a decline in sales, said one analyst.

The government has imposed 2.5 percent FED on 1000cc and below engine capacity vehicles, 5.0 percent FED on vehicles between 1001 and 2000cc engines, and 7.5 percent FED on cars with above 2,000cc engines.

In August, sales of cars with engine capacity above 1300cc dropped by 63 percent to 2,997 units as compared with 8,028 units sold during the same month in the previous year.

Sale of Toyota Corolla decreased by 59 percent to 1,727 units against 4,204 units sold during August ‘18 while sales of Honda Civic and City went down by 68 percent to 1,106 cars from 3,469 units, compared to the same period last year.

One dealer said future booking of cars was also down, which would have negative impact over sales in coming months as well. During this period, 1000cc cars - Suzuki Cultus and Suzuki WagonR - witnessed a drop in sales by 50 percent to 1,934 units against 3,830 units.

Under 800cc cars, sales increased by 19 percent to 4,195 units against 3,531 cars in August last year because of sales of new Suzuki Alto, which saw a sale of 3,435 units in August 2019. However, Alto sales also dropped by 21 percent in August as compared with 4,584 units sold in July 2019. Suzuki’s discontinued popular car Mehran saw a decline in sales by 83 percent to 389 units only against 2,318 units during the same period last year.

Sale of trucks dropped to 239 units from 615 units during the corresponding period last year, while sale of buses decreased to 42 units only from 107 units sold in August last year.

Sales of jeeps decreased to 296 units from 696 units during the corresponding period last year. Due to an increase in the rates, only 88 units of Toyota Fortuner were sold compared to 204 units in July ‘18.

Sale of tractors also decreased to 2,545 units from 7,913 units during the corresponding period last year.

Not only four wheelers, sales of three wheelers (rickshaws) and motor bikes also decreased to 126,338 units from 140,243 units last year.

Honda’s bike sales slightly increased to 80,104 units from 80,012 units in July last year. Suzuki saw a decline to 1,548 bikes from 1,837 bikes sold during the same period last year.