Karachi, August 19, 2019: Pakistan auto sales have witnessed the significant decline of 29 percent YoY for July -19 which is mainly attributable to, continuous trend of hike in auto prices in the range of (9-40 percent) in last 12 months and FED implied in the budget for FY20 & increase in fuel cost.
The major contributor to industry decline is HCAR, down 66 percent YoY, followed by INDU down 56 percent YoY & PSMC down 23 percent YOY for the month of July-19.
Indus Motors (INDU) has reported a decline of 56 percent YoY for July, which is the highest decline in the last 60 months (5 years). The significant attrition in the volume is mainly due to a 57 percent YoY decline in its Corolla variant, which is generally considered as high in demand. While, Fortuner and Hilux sales declined by 66 percent YoY and 48 percent YoY, respectively.
Pak Suzuki (PSMC) has recorded a 23 percent YoY decline in July. The decline in sales was led by Mehran, which is down 89 percent YoY as its production ceased in March 2019. Alto has emerged as an entry car for consumers depicting sales of 4,584 units. Bolan & Ravi variants are down 75 percent & 30 percent YoY, respectively. Sales of Wagon-R recorded only 843 units, down by 70 percent YoY, it is pertinent to mention that Wagon-R has likely lost its market share to Alto 660 cc as both variants have no material difference in their list price. Swift sales were down by 64 percent YoY compared to the same period last year.
Honda Cars (HCAR) sales fell 66 percent YoY during July-19, highest decline among its peers. Sale of City & Civic fell by 68 percent YoY. BR-V sales were down significantly by 35 percent YoY.
Atlas Honda (ATLH) witnessed a decline of 11 percent YoY in bike sales to 80,005 units for July.