Pakistan Automotive Manufacturers Association (Pama) has released sales data for July 2018. Passenger cars’ sales were up 16%, YoY, to 18,875 units during July 2018 against 16,337 units sold last year.
The country’s locally assembled cars & LCVs sales volume recorded an increase of 9%YoY to 21,344 units.
Indus Motors (INDU) sold 4,566 units in July 2018, up by a modest 18 percent. The YoY performance (+1,767 units) is largely driven by INDU’s sales as it sold 850 more units in July this year as compared to the corresponding month of previous year.
Pak Suzuki Motor Company’s (PSMC) sales have gone up by 12 percent to 9,700 units in the month of July compared to 8,642 units sold in the same period last year.
Honda Civic & City sales rose by 22%, YoY, due to clearance of backlog and high demand of 10th Generation Honda Civic & recently revamped City. It remained at the higher side and its sales stood at 4,609 units in the month of July 2018, which is up 22 percent compared to 3,820 units sold in July 2017.
Tractor sales saw a fall of 16% YoY (-747 units YoY) as customers bulked up purchases right after the budget announcement fearing an imposition of a law barring non-filers from tractor purchases.
The sales are likely to become sluggish during the remaining nine-months of FY19. Sales are likely to fall after the government enforces restrictions on new vehicle purchases by non-filers of income tax returns. Reports suggest roughly half of the car buyers are non-filers.
The deteriorating economic conditions characterized by rising inflation, weakening Pak Rupee, and higher interest rates will affect the sales as well.