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Car sales pandemic recovery starts as sedans decline slows

By Shahid Shah
August 12, 2020

KARACHI: Supported by 1300cc and above cars, sales of passenger cars showed improvement and dropped by only 7.7 percent in July 2020 compared to the same period last year, as lockdown eased and buyers started reappearing. Sales had dropped by 50 percent in June this year.

According to data released by Pakistan Automotive Manufacturers Association (PAMA) on Tuesday, passenger car sales dropped only 7.7 percent to 10,123 units in July 2020, from 10,968 units sold during the same period last year.

Jeeps, tractors, three-wheelers and motorcycles have also shown an increase in sales.

Former chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), Mashood Ali Khan said the auto industry’s situation had improved compared to April, May and June as those were the worst months.

However, he did point out that the sales were not satisfactory compared to the declining month of July last year, which had also shown a declining trend amid imposition of excise duty in Budget FY20. “If improvement continues, we may see sales increase in October and November,” he added.

In July, sales of 1300cc and above cars increased 60 percent to 5,803 units as compared with 3,607 units sold during the same month in the previous year. The main reason for this increase was the sale of Toyota Yaris, as 1,883 units of the model were sold during this period.

Sales of Toyota Corolla decreased by 23 percent to 1,528 units against 1,981 units sold during July 2019, while sales of Honda Civic and City went up 52 percent to 2,210 cars from 1,452 units, compared to the same period last year. Suzuki Swift also saw an increase to 182 cars from 174 cars sold last year.

During this month, 1000cc cars; Suzuki Cultus and Suzuki WagonR witnessed a drop in sales by 20 percent to 1,643 units against 2,051 units last year. Cars with 800cc engine capacity saw a decline in sales of 50 percent to 2,677 units in July against 5,310 units during the corresponding period last year. Even Suzuki’s new Alto saw a decline of 53 percent in sales to 2,158 units from 4,584 units sold during the same month last year.

Buses and trucks saw a decline of 51 percent in sales to 255 units in July from 525 units sold during the same period last year.

Sales of jeeps increased by 28 percent to 403 units from 316 units sold during July last year. Pick-up sales dropped to 1,133 units from 1,310 units in July 2019.

Similarly, tractor sales increased by 17 percent to 3,606 units in July 2020, from 3,089 units sold during the corresponding period last year. Rickshaws and motor bikes’ sale rose by 31 percent to 148,524 units in July from 113,096 units sold in the corresponding month last year.