Car sales started to show recovery after the COVID-19 lockdowns were eased as 10,123 units of passenger cars were sold in July 2020. On year-on-year basis this is still 7% less than 10,968 units sold in July 2019, however on month-on-month basis the figure shows a 20% improvement over 8,446 units sold in June 2020.
According to the data released by Pakistan Automotive Manufacturer’s Association (PAMA), the maximum number of sales were made within the ‘1300 cc and above’ category with 5,803 units, of which Honda cars (City & Civic) took the lead with 2,210 units, followed by Toyota Yaris (1,883 units), Toyota Corolla (1,528 units), and Suzuki Swift (182 units).
Below 1000cc category saw 2,677 units sold with Suzuki Alto 660cc selling 2,158 units, followed by Suzuki Bolan which sold just 519 units. The 1,000 cc category witnessed 1,643 units sold in July 2020 with Suzuki Cultus leading at 1,077 units, followed by Suzuki WagonR with 566 units only. The 4x4s and pickups segment saw 1,133 units sold with Toyota Fortuner selling 146 units, Honda BR-V 257 units, Suzuki Ravi 489 units, Toyota Hilux 486 units and Isuzu D-MAX at 40 units.
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All three main car assemblers reported monthly increase in sales, with Indus Motor Company (IMC) reporting the highest increase of 60%, followed by Pak Suzuki at 28% and Honda Atlas at 23%. According to analysts, the demand for cars is expected to grow stronger in the coming months as lower interest rates for auto financing has revived the demand for new cars.
Kia Lucky Motors which is not a member of PAMA also did quite well in July 2020. According to Topline Securities, Kia sold around 1,500 units in July 2020.
Former chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), Mashood Ali Khan said the auto industry’s situation had improved compared to April, May and June as those were the worst months. However, he did point out that the sales were not satisfactory compared to July last year, which had also shown a declining trend amid imposition of excise duty in Budget FY20. “If improvement continues, we may see sales increase in October and November,” he added.