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January 12, 2021

Car sales surge 18pc to 78,910 units in first half

Business

January 12, 2021

KARACHI: Car sales increased 18 percent to 78,910 units during the first six months of the current fiscal year of 2020/21 as consumer demand was seen coming back to normal aided by low interest rates, industry data showed on Monday.

Car sales by Suzuki, Indus Motors, Honda and Hyundai were recorded at 67,019 units in the corresponding period last year, Topline Securities said, citing data from the Pakistan Automotive Manufacturers Association. The demand is expected to continue increasing during the year. “We expect demand for cars to grow stronger owing to low interest rates environment and pickup in economic activity,” Fawad Basir, an analyst at Topline Securities.

Passenger car sales increased 12.6 percent to 11,247 units in December from 9,987 units sold during the same period in 2019. However, sales remained lower against 11,914 units sold in November 2020. Jeeps, buses, tractors, three-wheelers and motorcycles have also shown an increase in the sales.

One analyst said usually car sales declined in December as buyers wait for the new model in New Year. Thus, a drop was recorded in sales compared with November. With arrival of new entrants, buyers get option and there are chances of an increase in sales in January as buying on lease is also picking up, he said.

In December, 1300cc and above car sales showed an increase by 49 percent to 4,838 units compared with 3,246 units sold during the same month in the previous year. The main reason for the sales increase was the sale of Toyota Yaris during this period, which sold 1,440 units. Sales of Toyota Corolla decreased 13.9 percent to 1,795 units against 2,085 units sold during December 2019 while sales of Honda Civic and City were up 73 percent to 1,529 cars from 884 units, compared to the same period 2019. Suzuki Swift saw a decline to 74 cars from 277 cars sold last year. Suzuki did not produce Swift cars in December.

During this month, 1,000cc cars – Suzuki Cultus and Suzuki WagonR – witnessed increase in sales by 34.58 percent to 2,860 units as against 2,125 units in the corresponding period.

Under 800cc cars, sales dropped 23 percent to 3,549 units in December as against 4,616 units during the corresponding period in 2019. Suzuki’s new Alto saw a decline in sales to 2,954 units from 3,700 units sold during the same month in 2019.

Buses and trucks saw a slight increase in sales to 342 units in December from 315 units during the same period in corresponding year. Sale of jeeps increased by three and half times to 892 units from 197 units sold during December 2019. The main reason was an increase of 254 percent in the sales of Toyota Fortuner to 269 units from 76 units and sales of 388 units of Hyundai Tucson. Pick-up sales slightly dropped to 1,817 units from 1,916 units in December 2019. Sales of tractors rose 188 percent to 3,320 units in December from 1,153 units. Rickshaws and motor bikes’ sale rose 22 percent to 157,116 units in December from 128,866 units. New entrants into Pak Auto space Hyundai Nishat sold 511 units (up 8 percent month on month) in December 2020, while Lucky Motor sold around 600 units.