Increase comes on back of higher demand during the month
KARACHI:
Car sales increased by 46% in January 2021 to 17,515 units in comparison with the same period of last year, according to data released by the Pakistan Automotive Manufacturers Association (Pama).
Car sales grew on the back of higher demand during January, said auto analyst Nabeel Dochki. The highest uptick in sales was enjoyed by Pak Suzuki Motor Company (PSMC), which was likely due to a change in production towards double shifts.
Moreover, a significant change in customer preference was also witnessed as the proportion of Hilux and SUVs increased from a historic average of 5% to 19% in the sales mix, driven by higher demand for Sportage and Tucson.
Car sales rise 15% in December
Automakers sold 13,870 units in month vs 12,069 units in Dec 2019
Despite a month-on-month decrease in sales of automobiles in December 2020, the sector recorded a jump in demand on a year-on-year basis.
According to figures released by the Pakistan Automotive Manufacturers Association (PAMA) on Monday, sales of automobiles rose 15% to 13,870 units in December 2020 compared to 12,069 units in the same month of 2019.
“If we include sales of KIA Lucky Motor Corporation, which is not a member of PAMA, the number stands at around 20% on a year-on-year basis,” Topline Research said in a report.
Arif Habib Limited analyst Arsalan Hanif said Toyota Yaris had not been released in Pakistan during the corresponding month of 2019 and if its sales figures were excluded, then not much growth would be reflected in automobile sales.
A topsy-turvy year for carmakers
A topsy-turvy year for carmakers
Year 2020 was a topsy-turvy ride for the automobile sector ranging from high interest rates and declining demand to low rates and growing appetite.
Since 2019, the auto sector had been moving south in all segments - cars, tractors, two-wheelers, trucks and buses - with a hefty increase in cost of doing business resulting in price hike, said Pakistan Association of Automotive Parts and Accessories Manufacturers’ (Paapam) former chairman Mashood Ali Khan.
“In 2020, we were hit by the unexpected pandemic, forcing the manufacturers to completely shut down,” said Khan. “The impact was huge. Our supply chain, sales forecast, procurement and finances of all companies were deeply affected. Hefty losses were incurred by the entire industry.”