Locally assembled car sales decline 44% in November 2019

KARACHI: Pakistan’s car sales continued to trend down; depicting a decline of 44% YoY in Nov-19, taking cumulative attrition in 5MFY20 (July-November) to 45%.

This decline is primarily attributable to higher auto prices post rupee devaluation, and higher interest rates for auto financing.

Indus Motors (INDU) reported second consecutive sequential increase in volumetric sales; up by 6% in November mainly due to 10% and 8% increase in its Corolla & Fortuner variants, respectively.

This increase in volumes is on the back of aggressive promotions, discounts and different waiver schemes offered by company in collaboration with commercial banks. However, Indus Motor continues to report a decline on yearly basis; down by 52% in Nov-19.

Honda Cars (HCAR) sales fell 62% YoY during Nov-19, where combined sales of City & Civic fell by 66%, however it recorded increase of 4% on monthly basis.

Pak Suzuki (PSMC) recorded a 31% YoY decline in Nov-19. The decline in sales was led by Wagon-R & Cultus, which is down 70% & 41% respectively, Furthermore Alto has also depicted monthly decline of 27%, which is highest since its launch.

Bolan & Ravi variants are down 58% & 56% YoY, respectively. Swift sales were down by 42% YoY.

Analysts expect recovery in car volumes from start of 2020 as auto volumes will likely bottom out in Dec-19.

Atlas Honda (ATLH) motorcycle sales witnessed an increase of 6% YoY as sales clocked in at 95,009 units, however it recorded a decline of 5% MoM.

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