Car sales in the country jumped by 23pc on a month-on-month basis to 12,100 units in Dec 2019, as compared to Nov 2019. However, the overall unit sales declined 25pc to 187,707 units in 2019 when compared with 2018.
The MoM rise was largely led by a 49pc increase in Pak Suzuki Motor Company (PSMC) sales. The sales of the other two major manufacturers, Indus Motor (INDU) and Honda Car (HCAR) dropped by 12pc and 23pc, respectively.
The increase in PSMC sales was largely driven by the announcement of an increase in its car prices (effective from Jan 1, 2020).
The decline reported by the other manufacturers was largely in line with the historical year-end phenomenon, where consumers generally delay their purchases until the new year.
On a year-on-year basis, weak demand dynamics was again evident from a 38pc fall in sales in Dec 2019, taking 1HFY20 decline to 44pc YoY.
This was primarily attributable to 1) higher car prices mainly due to PKR devaluation and 2) higher interest rates.
PSMC sales were down 26pc YoY in Dec 2019, while INDU’s sales declined by 56pc YoY with Corolla sales falling by 50pc YoY. HCAR sales fell by 58pc YoY during Dec 2019 with combined sales of City & Civic declining by 56pc YoY.
Sale of motorcycles by Atlas Honda (ATLH) witnessed an increase of 6pc YoY, as sales clocked in at 85,000 units. However, it recorded a decline of 11pc MoM.
Tractor sales recorded a growth of 75pc YoY with Millat Tractor (MTL) sales rising by 175pc.
On a MoM basis, overall tractor sales were down 37pc.