Car sales record triple-digit growth in March
Sharp rise comes due to lockdown in March last year that restricted economic activity
KARACHI:
Automobile sales in Pakistan recorded a steep growth of 198% in March 2021 compared to the same period of last year primarily due to a lockdown in March 2020.
In addition, the dispatches of vehicles having engine capacity of 1,000cc and below skyrocketed 437% on a year-on-year basis.
According to data released by the Pakistan Automotive Manufacturers Association (PAMA) on Tuesday, car companies sold 20,801 units in March 2021 against 6,986 units dispatched in March 2020.
“The triple-digit growth in sales volume can be attributable to a low base effect amid a countrywide lockdown imposed by the government in March last year, which restricted economic activity,” said Arif Habib Limited analyst Arsalan Hanif in a report.
KSE-100 Index plummets 752 points as Covid fears weigh on sentiments
April 6, 2021
Bears continued to wreak havoc at Pakistan Stock Exchange (PSX), as investors have struggled to gain a firm foothold ever since the benchmark KSE-100 index slipped from the recent high of 47,000 points, as market is being held hostage to the flare-up in Covid-19 infection cases that has forced fresh rounds of lockdown across the country.
Owing to weak economic indicators and Covid-19 fears, on Monday the kse-100 index lost another 752 points by the closing bell to clock at 43,548.21 level.
Investors have remained muted over positive exports data, which posted an increased to a ten-year high at $2.345 billion during March and appreciation of Rupee, which has led the chart of the world’s best-performing currencies in the first three months of CY21 as it closed on a stronger note with an appreciation of 4.43% against the US Dollars.
Market watch: IMF loan approval helps KSE-100 ascend tribune.com.pk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from tribune.com.pk Daily Mail and Mail on Sunday newspapers.
Car sales jump 35% in February 2021
Increase comes on back of growing economic activity, lower interest rate
PHOTO: REUTERS
KARACHI:
Despite being hit hard in the previous year, Pakistan’s auto sector bounced back as sales grew 35% to 16,436 units in February 2021, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).
The surge in sales came on the back of improvement in economic activity, which drove demand for vehicles, and a lower policy rate, which led to an increase in auto financing.
“Improving economic conditions in rural areas because of higher prices for agricultural products, and the improving purchasing power parity also helped drive up sales,” said an AHL Research report.
A Long Road to a Faster Lane?
Zeenat Chaudhary on how the automotive industry will fare in these uncertain times.
Ever since Karl Benz invented the world’s first motor car in 1886 – the Benz Patent-Motorwagen – the automotive industry has come a long way. From hi-tech Hondas and Chryslers to electric Teslas and Nios, the global industry contributes roughly three percent to all GDP output. Due to the pandemic, however, worldwide car sales have taken a hit and are expected to fall from $74.9 million in 2019 to under $62 million in 2020, according to Statista.
Industry Overview
In Pakistan, the automotive industry, which contributes 2.8% to the country’s GDP (source: Invest Pakistan), has faced a cycle of booms and busts since the 2000s. In fact, the auto industry was on a downward trend before Covid-19 struck, primarily due to rising taxes (Federal Excise Duty increased from 2.5% to 7.5% and Additional Customs Duty by seven percent) and the rupee’s depreciation against th