Wednesday September 28, 2022

Car sales surge 81 percent year-on-year in August

By Our Correspondent
September 11, 2021

KARACHI: Sales of passenger cars jumped 81 percent in August, industry data showed on Friday, recovering from the collapse seen a year ago when coronavirus lockdowns and economic slowdown took a toll on sales.

Pakistan Automotive Manufacturers Association (PAMA) data presented car sales (PAMA members), for the month under review, increased to 17,899 units compared with 9,885 sold in August last year. However, August 2021 sales dropped 13 percent compared to July sales of 20,669 units.

Analysts said the major reason behind the surge in sales was an announcement of a better auto policy, which attracted the buyers. Last year, sales remained subdued due to Covid lockdown, they added.

In the Federal Budget of FY22, the government of Pakistan had announced major incentives for the auto sector, while some other benefits for the buyers are also expected in the Auto Policy for 2022-2026.

Major measures introduced in the budget included abolishment of 2.5 percent Federal Excise Duty (FED) along with reduction in sales tax from 17 percent to 12.5 percent for cars with the engine capacity of up to 1000cc, offering a total relief of 7 percent to customers.

Sales of all automobiles, including passenger and commercial, i.e., trucks and buses, jeeps, tractors, pickups, motorcycles, and rickshaws saw an upsurge in this period.

During this period, sales of 1300cc and above category cars were recorded at 7,247 units, up 63 percent compared with last year’s 4,748 units. It included 2,726 units of Honda Civic and City, 154 Suzuki Swifts, 1,942 Toyota Corollas, 2,025 Toyota Yaris, 258 Hyundai Elantras, and 142 units of Hyundai Sonata.

During this month, 1,000cc cars sales nearly doubled to 4,524 from 2,133 in August 2020, while sales of cars below 1000cc also increased two-fold to 6,128 from 3,004 sold last year.

One analyst said auto sales were seen staying the course this year as customers were set to enjoy some benefits under the new auto policy.

Sales of buses and trucks also doubled to 603 in August 2021 from 284 in August 2020.

On the other hand, sale of jeeps tripled to 1,268 units from 421 sold in the same period last year.

During this period, pick-up sales increased to 2,584 from1,436 same period last year, whereas sales of tractors increased to 3,316 units from 2,844.

The sale of rickshaws and motorbikes also grew to 149,605 compared to 141,027 same period last year.