Auto sales jump 32% in February

CARACHI:

Automobile sales recorded a healthy growth of 32% year-on-year to reach 21,664 units in February 2022.

Month-on-month sales rose 5%, according to data released by the Pakistan Automobile Manufacturers Association (PAMA).

In the first eight months of the current fiscal year, auto sales saw an increase of around 56% year-on-year to 178,250 units.

Speaking to The Express Tribune, Ismail Iqbal Securities analyst Muqeet Naeem pointed out that growth was driven by vehicles under 1,000cc as Suzuki Alto sales doubled to 7,175 units.

However, 1,300cc and larger vehicles saw a 32% decline in sales, mainly due to Corolla/Yaris and City/Civic sales dropping 34% and 37% respectively.

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“Volumes are increasing, new models are being introduced, new model reservations have also shown an outstanding response,” said automotive expert Mashood Ali Khan.

“But the industry is likely to face the fallout from inflation in the coming months,” he said, adding that with the new global uncertainties, the market could see a downtrend after August 2022.

Topline Research analyst Sunny Kumar pointed out that the month-over-month sales increase was led by Pak Suzuki Motor and Hyundai Nishat Motors.

Pak Suzuki sales were up 40% month-on-month, driven by Alto sales growth of 86% and Cultus of 44%, he said.

“The significant jump is due to the ease of production compared to the previous month,” he added.

Hyundai Nishat sold 1,469 units in February 2022, up 2.4x on a monthly basis.

Tucson sales increased 5.7x to 774 units, while Elantra sales increased 2.9x to 312 units amid greater acceptability of new entrants, he pointed out. .

Honda Atlas Cars and Indus Motor posted a 32% month-over-month drop in sales in February 2022, he noted.

In the first eight months of 2021-22, auto sales rose about 56%, supported by the macroeconomic recovery and single-digit interest rates, he said.

In the tractor segment, Al-Ghazi tractor sales were up 5% month-on-month and 42% year-on-year.

“Millat Tractors has not yet released the turnover,” he said.

In the motorcycle category, sales were down 11% month on month and 12% year on year in February 2022. “This brings bicycle sales to 1.2 million units in the first eight months. from 2021-22, down. 3% over one year.

AHL’s head of research, Tahir Abbas, pointed out that truck and bus sales were down 30% month-on-month, while their sales were up 66% from year-over-year in February 2022, mainly due to increased transportation activities.

Regarding Pak Suzuki, Insight Securities analyst Ali Asif pointed out that sales have increased as the company overcomes the chip shortage associated with the reopening of Alto VXL booking.

People were waiting for the launch of the new Civic, which triggered the drop in sales of Honda Atlas Cars, amid the closure of reservations for the old Civic model.

The drop in tractor sales was mainly due to operational restrictions at Millat Tractor following a prolonged delay in paying out Rs 6.2 billion in sales tax refunds, it said.

Published in The Express Tribune, March 11and2022.

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