KARACHI: Pakistan Automotive Manufacturers Association (PAMA) released the monthly Automobile sales data for April 2019 wherein total Automobile sales for the month declined 25% to 19.9k vehicles.[the_ad id=”32940″]Passenger car sales for Apr’19 arrived at 17.1k units, registering decline of 21%YoY/14%MoM. Jeep sales during the month arrived at 721 units (-33%YoY) versus 1,081 units sold in Apr’18. Moreover, truck sales registered a fall of 55%YoY/4%MoM whereas Bus sales recorded 14%YoY/3%MoM decline. Prevalent economic slowdown, increase in automobile prices & hefty increment in interest rates adversely affecting auto financing can be attributed to the notable decline in Apr’19 sales.
On a cumulative basis, automobile sales declined 7%YoY to 211.1k units during 10MFY19. With regards to segmental breakdown, PC sales declined 3%YoY while sales of buses improved 33%YoY. Moreover, Jeeps, Trucks & Pickups registered decline of 40%YoY, 34%YoY & 13%YoY respectively during the period under review.
Passenger Cars: Passenger Car (PC) sales arrived at 17.1k units in Apr’19 as compared to 21.5k units sold during the same month last year. Sales of 1000cc, “800cc & below 1000cc” & “1300cc & above” depicted 6%YoY/39%YoY/16%YoY decline, respectively. Moreover, PSMC recorded stagnant market share at 56% in Apr’19 whereas INDU improved its market share 5pps to 30% while market share for HCAR declined 3pps to 15% during the month as compared to same month last year.
Pak Suzuki Motor Company: Total sales of PSMC for the month of Apr’19 clocked in at 10.8k units, exhibiting a decline of 27%YoY. Phasing out of Mehran led the decline in sales volume for PSMC as Mehran recorded 41%YoY lower volumes during Apr’19. Moreover, Swift, Wagon R, Bolan & Ravi recorded 15%YoY, 13%YoY, 33%YoY & 43%YoY decline with only Cultus managing to record growth of 5%YoY during the month.
Indus Motor Company: Indus motors witnessed 7%YoY decline in its car sales (5.7k units) during Apr’19. Hilux & Fortuner sales registered steep falls of 63%YoY/60%YoY respectively, whereas sales of Corolla improved 6%YoY.
Honda Atlas Cars: HCAR’s PC sales (Civic & City) clocked in at 2.8k units in Apr’19 as compared to 4.6k units sold in Apr’18, registering 38%YoY decline. Moreover, BR-V sales arrived 6%YoY lower with 526 units sold in Apr’19.
Trucks and Busses: Trucks & Buses sales for the month of Apr’19 arrived 52%YoY lower at 472 units with sales of HINO, Master & ISUZU registering decline of 66%YoY, 35%YoY & 50%YoY respectively during the month.
Tractors: Tractor sales declined 32%YoY as FIAT (-32%YoY) & Massey Ferguson (-32%YoY) recorded lower volumes during the month. Rising input costs along with unfavorable farm economics continue to impair tractor sales volumes.
“Going forward, we reiterate government’s decision to allow non-filers to purchase automobiles of any engine capacity would provide support to declining volumes of the Industry. However, slowdown on economic front, rising interest rates (& its negative impact on auto-financing) along with PKR depreciation (leading to higher car prices) would continue to remain primary challenges for the industry,” a report issued by Pearl Securities.