The sale of cars increased by 8pc YoY to 11,501 units in July 2020, as compared to the sale of 10,968 units in the same month of the last fiscal.
According to data released by the Pakistan Automobile Manufacturers Association (PAMA), the sales of Indus Motor Company (INDU) and Honda Atlas Cars (HCAL) registered growths of 68pc YoY and 46pc YoY, respectively. However, Pak Suzuki Motor Company (PSMC) sales declined by 40pc on a yearly basis.
Meanwhile, Kia Lucky Motors, a non-member of PAMA, continued to perform well. As per Topline Securities’ estimates, the company recorded sales of 1,500 units in July 2020.
On a month-on-month basis, the overall sale of cars across Pakistan surged by 36pc in July 2020, as compared to June 2020. This was due to the easing of the Covid-19 lockdowns, coupled with car assemblers ramping up production levels to meet the pent-up demand of consumers.
All three main car assemblers reported monthly increases, with INDU reporting the highest increase of 60pc, followed by PSMC 28pc and HCAR 23pc.
Atlas Honda (ATLH) recorded motorbike sales of 94,003 units in July 2020, up 17pc YoY and 4pc MoM.
Moreover, tractor sales (excluding Orient) in July 2020 increased 17pc YoY, while they declined 32pc MoM. Millat Tractors (MTL) and Al Ghazi Tractors (AGTL) sales increased by 14pc YoY and 25pc YoY, respectively.
According to Topline Securities, the demand for cars is expected to grow stronger in the coming months as lower interest rates for auto financing has revived the demand for new cars.