Passenger car sales climb by 118% in February

• There is 41% decline in sales in first 8 months of fiscal year.
• Sales climb by 2% month-on-month in February this year.
• Prices, expensive auto financing contribute to decline in sales.

KARACHI: Pakistan'sautomotive sector witnessed a sharp contrast in sales as thepassenger car sales soaredyear-on-year in Februarydespite a significant decline in the sales for the fiscal year to date, The News reported Wednesday.

According to latest data byPakistan Automotive Manufacturers Association (PAMA), car sales saw asignificant year-on-year increase of 118% to7,953 vehicles in February 2024,up from 3,642 units in the same month last year.

However, the increase in sales differentiate with abroader 41% decline in sales over thefirst eight months of the fiscal year as only46,417 units were sold in comparison with the 78,575 units during the same period in FY23.

In February 2024, the sales climbed by 2% month-on-month compared with7,802 units sold in January 2024. The sales of1300cc and above cars wererecorded at 3,941 units in February, up by 39% in the same month last year.

Meanwhile, in February this year,1,000cc carsrecorded sales of 456 units (320 units of Suzuki Cultus and 136 units of Suzuki Wagon R) against 165 units in the same month last year.

The vehicles below 1,000cc recorded a sale3,556 units, higher by 4.6 times compared with 635 units last year. Suzuki Alto sales surged to 3,373 units on a year-on-year basis in February 2024, compared with 544 units.

Moreover, sales of buses and trucks witnessed a declineto 353 units in the period under discussion from 657 units in the same month last year. Jeeps andpick-ups also saw a decreaseto 1,756 units from 2,544 units sold during the same period last year and tractors were sold slightly high — from3,330 to3,366 units.

Rickshaws andmotorbikes saw a decrease93,764 units in February compared with 103,003 units in the same period last year.

'Tax also hurting sales of cars'

Pakistan Association of Automotive Parts and Accessories Manufacturers' (PAAPAM) former chairman,Mashood Ali Khan, said that sales of vehicles includingbuses and trucks decreased except fortractors.

“This industry is not going to work unless drastic changes are made in the policy," he said, adding that the sales ofbuses and trucks remained low as theindustry is not working.

He also said that the sales tax on cars imposed by the caretaker government also affected the sales. "The auto industry’s results are not good. Prices are very high," he said.

Khan added that there was aneed for an industry policy, as the industry has been ignored, which would not be beneficial for the country.“We need to cut down on car prices to increase sales and make a win-win position for the customers, as a common person is not in the position to buy a car because of high inflation,” the auto expert added.

Prices,expensive auto financing affecting sales: Topline

According to brokerage Topline Securities, car sales includingnon-PAMA members’ car salesclocked in at around 10,900, down by 7% month-on-month while up by 52% year-on-year in February 2024.

The sales byIndus Motors decreased by 26%month-on-month due to thehigh base effect of last month and the launch of the new Corolla Cross.

Escalatingcar prices, expensive auto financing, and the low purchasing power of consumers contribute to the decline in sales, said Topline Securities.