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Proposal limits push down auto sales

KARACHI:

Because of the ban on auto partial import in an attempt to curb current account deficit (CAD), Pakistan auto sales fell 59% to 14,000 units. in July 2022 Compared with June 2022

This drop includes sales of non-Pama (Pakistan Automobile Manufacturers Association) report by Topline Research.

AT decline primarily due to production problems and higher car price, which has reduced purchase power of consumers. Car sales were also down by 52% in July compared to the corresponding period last yearaccording to Topline Research analyst Sunny Kumar.

” decline in sales are mainly due to the lack of of auto parts led by restrictions on letters of credit (LC) to curb imports, forcing auto players to reduce their work hours in one shift,” said Aba Ali Habib Securities. auto analyst Ali Asif.

Ind Motor (INDU) posted a decline of 62% to 2375 units mainly due to non-production days in July 2022 according to Topline Securities.

Similarly, Hyundai sales were down by 89% to 201 units. from 1 871 units in June 2022

Pak Suzuki Motor Company (PSMC) sales were down 58% in July 2022. All options of company registered decline in in range of 57-95% except for Alto, whose sales rose to 4,618 units. in July from 1216 units in June, largely due to the low base effect.

“Car sales for July fell due to difficulty in opening letters of credit
for import of parts and CKD
sets, as a result in a decline in production and delay in car supplies,” he said. senior auto analyst Arsalan Khanif.

Honda Atlas Cars (HCAR) also wrote down decline of 35% up to 2537 units in July 2022 Led by decline in sales of City and Civic by 30% compared to June figures.

Among tractors, Millat Tractors (MTL) recorded decline of 60% off last month and by 65% ​​to 1011 units compared to the same period last year. Al Ghazi Tractors (AGTL) records sales of 1243 units, down 48% compared to June and 12% less than the same period last year.

” decline in car sales are mainly due to supply restrictions and production shutdowns,” said Asad Ali, an analyst at AL Habib Capital Markets Ltd (AHCML).

National Bank of Pakistan (SBP) imposed restrictions on and restricted imports of CKD kits that have stalled in assembly.

Bicycle sales in Pakistan were down by 33% compared to June and by 34% compared to with same period last year. Honda (ATLH) recorded sales of 80,000 units, down
28% since June and 20% compared with same period last year.

Sale of trucks and buses were down 22% since June and 37% year on year up to 379 units in July 2022 This was primarily due to drop in transport activity in conditions of slowdown in General economy said Sunny Kumar.

Published in Express Tribune, 13 August.th2022.

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Derrick Santistevan
Derrick Santistevan
Derrick is the Researcher at World Weekly News. He tries to find the latest things going around in our world and share it with our readers.

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