Locally assembles passenger car sales decline 56pc in October 2019
KARACHI: Overall passenger car sales clocked in at 10,853 units in October 2019, 56 percent down against 24,850 units sold in the same month last year, numbers issued by Pakistan Automotive Manufacturers Association (PAMA) suggest.
On aggregate basis, locally assembled passenger car sales registered a decline of 46 percent to 45,161 units in four months (July-October 2019) compared with 83,201 units sold in the corresponding period last year.
Already under stress assemblers anticipate sales slowdown during October-December period as customers like past practice usually avoid purchasing vehicles due to change in model year.
Another reason of falling sales is absence of investors from the car market. The Federal Board of Revenue (FBR) is now more vigil in looking after those people, who without declaring their income, used to invest in cars to whiten their black money.
Analysts say car prices have also gone beyond the reach of many people due to frequent hikes by the assemblers on falling rupee against the dollar, imposition of federal excise duty in various engine power and additional customs duty on imports of raw material. Car financing also shrank owing to very high interest rates. It may be mentioned here the government takes away around 40 percent of taxes on car’s retail price.
According to the numbers, Pak Suzuki Motor Company (PSMC) witnessed 48 percent decline in units sold during October to 6,973 units. During four months, Suzuki sold 30,120 units, down 30 percent as against 42,914 units sold in the same period last year.
Indus Motor Company (IMC) saw 61 percent plunge in units sold during October to 2,496 units. During four months, IMC sold 9,203 units, down 58 percent as against 21,828 units sold in the same period last year.
Honda Cars (HCAR) registered percent 72 percent decline in units sold during October to 1,384 units. During four months, Honda sold 5,838 units, down 68 percent as against 18,459 units sold in the same period last year.