KARACHI: Passenger car sales surged 62 percent in the first five months (July-November) of the fiscal year 2021-22 to 90,303 units from 55,779 units during the same period last year.
According to the data released from Pakistan Automotive Manufacturers Association (PAMA) on Monday, passenger car sales dropped 12 percent on a month-on-month basis, with 15,351 new vehicles sold in November 2021.
According to PAMA, 2,062 less cars were sold in November as compared to October 2021, while the sales witnessed 29 percent increase on a year-on-year basis as compared to November 2020.
The growth has been seen moderating on rising borrowing cost and tight credit conditions for the last two months, as earlier in October, car sales declined 8.2 percent month-on-month to 17,413 units from 18,971 units in September 2021.
During November 2021, sales of 1300cc and above cars were recorded at 8,102 units, up 29.72 percent compared with sales of 6,244 units in the same period last year. It included 2,771 units of Honda Civic and City, 6 units of Suzuki Swift, 2,786 units of Toyota Corolla, 1,975 units of Toyota Yaris, 244 units of Hyundai Elantra, and 320 units of Hyundai Sonata.
In November, sales of cars with 1000cc engine capacity were 3,640 units, up from 2,398 units in the same month last year. However, November sales remained 38.35 percent higher compared to October sales of 2,631 units. Below 1000cc cars recorded sales at 3,609 units from 3,272 units sold during the same period last year.
Similarly, buses and trucks saw an increase to 532 units in November 2021 from 315 units in November 2020. Jeep sales increased to 1,016 units in November 2021 from 869 units sold during the same period last year.
Pick-up sales increased to 2,347 units from 1,750 units during the same period last year. Sales of tractors rose to 4,617 units in November 2021 from 3,262 units sold in November 2020. The sale of rickshaws and motorbikes slightly decreased to 166,630 units during November 2021 against 168,937 units sold during the same period last year.
The central bank’s decision on car financing, according to analysts, will slowdown off-take in the near-term. They said that though car sales increased during the outgoing month on a year-on-year basis, some impact was expected on car financing after the State Bank of Pakistan increased the down payment limit and reduced the financing period to a maximum of five years.
They said that due to an increase in car prices, inflation, and rupee depreciation, car sales would be affected in the coming days. In addition, the discount rate is also expected to be increased in the upcoming monetary policy. “Car financing will be affected resulting in a decline in car sales,” they added. – TLTP