Car sales plunge 70% in March amidst COVID-19 lockdown

KARACHI: Car sales (as reported by PAMA) have plunged by 70% YoY and 43% MoM in Mar-2020 amidst the lockdown in the country due to the outbreak of Covid-19. The lockdown in the country started on Mar 23, 2020.

Pak Suzuki Motor Company (PSMC) recorded its lowest monthly sales since Mar-2009 with volumes declining by 81% YoY and 50% MoM.

Indus Motor (INDU) and Honda Car (HCAR) did not fare any better with 50% YoY/43% MoM and 59% YoY/27% MoM decline in volumes, respectively.

The abysmally low sales because of Covid-19 outbreak has added to the sector’s already weak sales, resulting in overall auto sales registering a decline of 47% YoY in 9MFY20.

The sales by Atlas Honda (ATLH) of motorcycles decreased by 24% YoY and 24% MoM to 69k units, which is the lowest monthly sale for ATLH since Jul-2016.

The tractor sales recorded a 49% YoY decline, however fell by onlgy 7% MoM.

Millat Tractors (MTL) reported an increase of 2% MoM in its sales, while Al Ghazi Tractors (AGTL) sales declined by 22% MoM.

“We expect tractors sales to be relatively less affected because of Covid-19 outbreak, as the focus of the government has been to keep agriculture related activities up and running,” a Topline Securities report said.

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