Pakistan Automotive Manufacturers Association has released the car sales data for the month of March 2019.
During the month of March, the sales went up by meager 2% to 22,783 units as compared with 22,380 units in FY18 due to a general slowdown in the economy and the rise in car prices.
Moreover, from the last month, the car sales showed a growth of 16% on a month on month basis.
The sales in the first nine months of FY19 declined 4% to 185,000 units against 192,734 units in the same period last year
According to the analysts, increase in interest rates, soft rupee impact and increasing inflation led to increase in car prices, impacting purchasing power of buyers.
The central bank increased its key policy rate by 500 basis points to 10.75 percent since January last year.
Indus Motor reported an 11% decline in sales in March 2019 on account of lower sales of Fortuner and Hilux which were down by 63% and 65% due to 10% Federal Excise duty imposed on cars above 1700cc cars. Corolla sales posted a growth of 2%.
As per the reports, the government is mulling over the removal of 10% FED on engines with 1700CC and above however no official announcement has been made yet.
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Pak Suzuki Motor company recorded the highest sales in March at 13,815 units, up 23% from 11,232 units in March 2018 and 27% on a month on month basis. The growth in sales was led by the demand for WagonR with year-on-year growth of 63% with other major contributors in overall growth from Cultus, up by 17%, Bolan up by 38% and Ravi which was up by 36%.
Pak Suzuki’s sales might improve in the coming months, as it is ready to launch the country’s first 660cc Alto. The announcement is expected by the end of the current week at the Pakistan Auto Parts Show 2019 to be held on April 12-14.
In March, sales of Honda fell 29 percent year-on-year, the steepest decline since May 2012. Analysts attributed the decline in City and Civic variants to the launch of a new variant (Civic 1.5 Turbo) in April.