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July 14, 2020

Car sales plunge 50 percent in June

Business

July 14, 2020

KARACHI: Passenger car sales have dropped by 50 percent in June 2020 as compared to the same period last year due to disruption in sales amid lockdown and slowdown of economy.

According to data released by Pakistan Automotive Manufacturers Association (PAMA) on Monday for FY20, passenger car sales dropped 50 percent to only 7,325 units in June 2020 from 14,767 units sold during the same period last year.

Former chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Mashood Ali Khan said the situation for the auto industry was gloomy ahead, as only interest rate cut was in favour while no other measure supported the auto industry.

He said that jobs of people were not secure in other industries, so they were not buying cars. “Besides, the auto part industry was also facing difficulties, as it was charged a higher amount of income tax,” he added.

Passenger car sales in FY20 (July-June) dropped by 53.5 percent to 96,455 units, compared to 207,630 units sold during FY19.

In June, sales of 1300cc and above car sales dropped by 42.6 percent to 4,056 units only as compared with 7,074 units sold during the same month in the previous year despite sales of Toyota Yaris.

During FY20, sales of these cars dropped by 61 percent to 39,386 cars from 100,959 cars last year. Sales of Toyota Corolla decreased by 80 percent to 855 units from 4,406 units in June 2019, while sales of Honda Civic and City were also down by 12.67 percent to 1,839 cars from 2,106 units, compared to the same period last year.

Suzuki Swift saw a decline of 64 percent to 202 cars only from 562 cars sold during the same period last year. Indus Motor’s newly launched Toyota Yaris saw sales of 1,160 units in June.

During this period, 1000cc cars; Suzuki Cultus and Suzuki WagonR witnessed a drop in sales by 64 percent to 1,306 units against 3,614 units sold last year. Under 800cc cars, sales dropped by 52 percent to 1,963 units in June against 4,079 units sold during the corresponding period last year.

Buses and trucks too saw a decline of 46 percent in sales to 3,647 units in FY20 compared to 6,763 units sold last year. Sale of jeeps decreased by 55 percent to 3,459 units during FY20 from 7,654 units sold during FY19. Pick-up sales dropped to 12,048 units from 25,362 units in FY19.

Tractor sales decreased by 35 percent to 32,727 units in FY20 from 50,405 units sold last year. Similarly, the data showed that rickshaw and motor bike sales dropped by 23 percent to 1.37 million units in FY20 from 1.78 million units sold in FY19.