Automobile sales plunge 38pc in July-March – Business

KARACHI: Sales of cars, light commercial vehicles (LCVs), pickups and jeeps dropped three per cent to 9,379 units in March from 9,709 units in February. The sales were only 1pc lower than the 9,472 units sold in March 2023.

The total drop in the above segment stood at 38pc to 69,078 units during 9MFY24 as compared to 110,898 in the same period last fiscal year due to the declining trend in auto financing, thanks to an unprecedented interest rate of 22pc, soaring prices, and consumers’ shrinking purchasing power.

According to data issued by the Pakistan Automotive Manufacturers (PAMA), sales of tractors surged by 66pc to 35,199 units in July-March from 21,233 units due to the low base of last year amid the flood. In contrast, truck, bus, and two/three-wheelers sales decreased by 45pc, 39pc, and 10pc, respectively.

In the 1,300cc and above, Honda Civic and City sales plunged by 31pc to 8,514 units from 12,381 in 9MFY24, while Suzuki Swift sales shrank by 58pc to 3,586 from 8,584 units.

Demand for tractors surges by 66pc

Toyota Corolla, Yaris and Cross sales were down 33pc to 10,728 units in July-March FY24 from 15,994 units in the same period last year.

Hyundai Elantra and Sonata sales dropped 59pc and 43pc to 778 and 611 units, respectively, from 1,886 and 1,066 units in 9MFY23.

In the 1,000cc segment, Suzuki Cultus and WagonR sales tumbled 55pc and 47pc to 2,803 and 2,752 units from 6,233 and 5,022 in 9MFY23.

The sales of Suzuki Bolan and Alto (below 1,000cc category) came down by 55pc and 26pc to 1,734 and 22,683 units from 3,865 and 30,744 units in 9MFY24.

Sunny Kumar of Topline Securities Ltd hopes that the improvement in economic activity following the IMF’s new programme, a stable currency, and reductions in interest rates will boost car sales.

Truck sales declined to 1,548 from 2,825, while bus sales stood at 340 versus 557 in 9MFY23.

In LCVs, vans and jeeps, a whooping drop of 69pc was recorded in the sale of Toyota Fortuner and Revo to 2,973 from 9,598 units in 9MFY23 while Hyundai Tucson and Honda BR-V and HR-V sales plunged by 39pc and 64pc to 2,429 and 1,415 during 9MFY24 units from 3,952 and 3,897 units in the same period last fiscal.

Among the gainers were Sazgar Haval, whose sales swelled by 153pc to 3,136 units in 9MFY24 from 1,238 units in the same period last fiscal year, while JAC X-200 and Hyundai Porter sales rose to 494 and 1,318 units from 490 and 998 units.

Published in Dawn, April 18th, 2024