Pakistan Automotive Manufacturers Association (PAMA) released latest auto sales data for the month of Jan’19, exhibiting a growth of 16% MoM, while declining by 4% YoY to 22,538 units. Despite of the drastic increase in car prices and ban on non-filers from purchase of new cars, consumers continued to desire to get their cars delivered in the New Year.
In spite of higher interest rate (Jan’19; Discount rate at 10.50%) era, support to auto volumes stemmed from rise in auto financing by 2% MoM to PKR 205bn compared to PKR 201bn in Nov’18. Furthermore, after allowing non-filers to purchase cars upto 1,300cc some relief to the auto sector has been provided.
Moreover, increase in import duty on used imported cars and restrictions on imports may have material positive impact on local auto industry. In the 1,300cc and above category, sales increased by 13% YoY / 49% MoM to 9,750 units in Jan’19 owing to 26% YoY and 28% MoM increase in sales of Corolla to 5,353 units.
In 1,000cc category, volumes increased by 11% YoY / 12% MoM due to higher dispatches of Wagon R up by 15% YoY and 13% MoM. In the below 1,000cc category, Mehran sales dropped by 16% MoM and 37% YoY to 2,709 units.
In LCVs+4×4 category, total sales stood at 4,794 units, down by 4% MoM / 18% YoY due to significant decline in sale of Toyota Fortuner by 45% YoY. During the month of Jan’19 sales registered a growth of 16% MoM to 22,538 units.
Noticeably during the month INDU managed to post third highest monthly sales ever at 6,249 units, up by 16% YoY and 17% MoM on account of uptick in demand of Corolla, HCAR sales increased by 91% MoM and 3% YoY to 4,518 units given Civic/City December sales carried forward to January sales, and SAZEW sales increased by 291% MoM to 2,505 units.
On the other hand, MTL’s sales significantly increased by 434% MoM to 1,950 units on account of plant becoming operational after annual maintenance.