On the back of an economic growth, Pakistan’s car sales surged 45 percent year over year in October, but fell 8.2 percent month over month.
According to reports, the growth was slowing due to increased borrowing costs and restrictive credit conditions enforced by the State Bank of Pakistan’s (SBP) decision to slow car financing offtake in the short term.
According to figures from the Pakistan Automotive Manufacturers Association (PAMA), car sales jumped by 45.14 percent to 17,413 units in October compared to 11,997 units sold during October last year. However, sales in October 2021 were 8.2 percent lower than in September 2021, at 18,971 units.
Read more: Toyota, Suzuki set new records for most car sales in Pakistan
The total number of units sold in the first four months of FY21-22 (July-October) was 74,952, rising 71 percent from 43,865 units in the same period last year.
Though automobile sales grew in the previous month, analysts predicted that the SBP’s increase in the down payment limit and reduction in the financing period to a maximum of five years would have an influence on car financing.
“The effect was noticeable on smaller automobile sales, which are generally acquired on bank financing by low-income persons,” an analyst was cited as saying. He predicted that automobile sales would suffer in the following days as a result of rising car prices, inflation, and rupee devaluation.
In addition, the discount rate is projected to rise in the next monetary policy meeting. He predicted that “auto financing will be impacted, resulting in a drop in car sales.”
Sales of cars of 1300cc and more reached 8,619 units during this period, increasing 34.46 percent from 6,410 units in the same period last year. It includes 2,651 Honda Civic and City cars, 23 Suzuki Swift units, 3,341 Toyota Corolla units, 2,037 Toyota Yaris, 312 Hyundai Elantra, and 255 Hyundai Sonata units.
Car sales with 1000cc engines increased to 2,631 units in October, up from 2,014 units in the same month last year. However, sales in October were 44.42 percent lower than in September, when 4,734 units were sold.
Sales of cars with engines under 1000cc increased to 6,163 units, up from 3,573 units sold in the same period last year. Buses and trucks, meanwhile, increased from 366 units in October 2020 to 484 units in October 2021. Jeep sales grew to 1,229 vehicles in the first quarter of this year, up from 822 units in the same period previous year.
Sales of pickup trucks grew to 2,360 units from 1,263 units the previous year. Tractor sales increased to 5,361 units from 4,516 units. Rckshaw and motorcycle sales grew marginally to 177,329 units in October 2021, compared to 176,082 units sold during the same period last year.
