Pakistan Automotive Manufacturers Association (PAMA) released latest auto sales data for Mar’19, portraying a jump of 15% MoM / 2% YoY to 22,878 units. The growth in sales can be attributable to additional working days in the month of March compared to February, government lifting ban from non-filers on purchase of new cars irrespective of engine capacity, and increase in import duty on used imported cars and restrictions on imports may have increased demand of locally manufactured cars.
In the 1,300cc and above category, sales decreased by 12% YoY while up by 4% MoM to 8,576 units in Mar’19 owing to massive increase in prices of Corolla, Civic and City resulting in lower demand.
In the 1,000cc category, volumes augmented on yearly basis 39% YoY / 23% MoM due to significant increase in dispatches of Wagon R by 63% YoY / 23% MoM to 2,982 units. In the below 1,000cc category, Mehran sales meagerly increased by 1% YoY and drastically up by 35% MoM to 3,942 units.
In LCVs+4×4 category, total sales stood at 5,125 units, surged by 4% YoY and 15% MoM due to bounce back in dispatches of Bolan and Ravi by 38% and 36% YoY respectively as non-filers were allowed to purchase cars.
Analysts believe various challenges are looming in on auto sector such as continuous currency depreciation, rising interest rates, significant surge in car prices amid rising cost and additional FED of 10% might dent its volumes going forward, we view.
PSMC posted impressive sales number
During the month PSMC sales increased by 23% YoY / 27% MoM to 13,815 units posted second highest monthly volumes as all models registered double digit growth on monthly basis, INDU sales went down by 11% YoY and 7% MoM due to significant decline in sales of Hilux and Fortuner due to 10% FED and competition from ISUZU D-MAX, and AGTL and MTL sales increased by 65% MoM and 28% MoM.