LAHORE: Auto sales nosedived 17% year-on-year to 17,442 units in November, according to data released by Pakistan Automotive Manufacturers Association (PAMA) on Tuesday.
During the first five months (July-November) of FY19, automobile sales were recorded at 100,643 units or down 4% YoY against 104,901 units in same period last year (SPLY), which is the first decline in five years.
On a month-on-month basis (MoM), auto sales declined 30% to 17,442 units in November against 24,850 units in October.
According to a Topline Securities report, this fall in automobile sales was expected considering the worsening economy, law barring tax non-filers from procuring cars and multiple price rises due to rupee devaluation.
While talking to Profit, Head of Research Arif Habib Limited Samilullah Tariq said, “The auto sales have declined due to rising car prices because of a weaker exchange rate and rising interest rates denting auto financing.”
He added, “Weak sentiment in the economy is affecting consumer behaviour, which is contributing to a fall in sales of automobiles.”
For Pak Suzuki Motors, sales plunged 25% YoY to 8,511 units in November against 11,285 units in the corresponding period of last year.
Sales in first five months of FY19 for Pak Suzuki contracted 11% to 51,425 against 57,776 units in the corresponding period of last year.
The sales decline was fueled by 7%, 44%, 39% and 28% decline in Swift, Mehran, Bolan and Ravi variants, respectively while the only variant to record growth was Cultus, up by 13% YoY.
On a MoM basis, Pak Suzuki sales nosedived 37% to 8,511 units in November from 13,346 units last month.
Indus Motors recorded a year-on-year increase of 7% in sales, touching 5,479 units in November compared to 5,350 units in the corresponding period of last year.
Moreover, on a MoM basis, its sales fell by 15% to 5,479 from 6,409 units in October. For five months (July-November) of FY19, sales grew 7% to 27,307 units compared to 25,558 units in SPLY.
Toyota Corolla sales increased by 9% YoY, whilst sales of Hilux and Fortuner decreased by 46% and 15%, respectively.
Honda exhibited a similar trajectory to Pak Suzuki with sales registering a steep fall of 23% YoY to 3,452 in November against 4,456 units in SPLY.
On a MoM basis, Honda’s sales plunged 31% to 3,452 from 5,005 units in October. During the first five months of FY19, Honda recorded a meagre 2% in car sales, touching 21,911 against 21,567 units in the corresponding period of last year.
Sales of Honda were driven down by 76% lower BR-V sales and sales of City and Civic on a cumulative basis decreased only 2% YoY.