Daily The Business

Car sales down 19 percent in August


By S N Syed

KARACHI: Car sales in the month of August have declined by 19 percent compared to July this year.

According to numbers released by Pakistan Automotive Manufacturers Association (PAMA) Tuesday, total car sales clocked in at 17,977 units in August 2018, down 19% from 21,377 in July 2018.

Analyst Arsalan Hanif at Arif Habib Limited said the Eid holidays, restriction on non-filers from purchasing new cars, uptick in car prices and high base effect were the major reasons behind the decline. However, “we believe economic slowdown, rising interest rates and arrival of new players would play crucial role as new customers may wait for new upcoming models,” he said.

In the 1300cc and above category, sales displayed a decline of 12% YoY / 17% MoM to 8,028 units in Aug’18 amid 25% MoM drop in sales of Civic/City. In 1,000cc category, dispatches fell by 4% YoY and 14% MoM due to religious holidays. In the below 1,000cc category, Mehran sales registered massive decline of 33% YoY and 42% MoM to 2,318 units. “We believe launch of new United Bravo (800cc car) which is equipped with more features and also price competitive led sales decline,” said Hanif.

In LCVs+4×4 category, total sales stood at 3,486 units, down by 30% YoY and 9% MoM due to economic slowdown. On monthly basis, Honda BR-V sales managed to remain positive and posted a growth of 32% MoM to 492 units compared to 372 units in Jul’18.

Tractors sales during the month remained depressed and dropped by 21% YoY while up by 4% MoM to 4,041 units. In the period under review, AGTL and MTL sales plunged by 45% YoY and 8% YoY to 1,051 units and 2,980 units while AGTL sales on monthly basis posted significant growth of 29% MoM, respectively.

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