Karachi, August 11, 2020: Car sales, as reported by PAMA, declined by 8 percent YoY in Jul-2020 to 11,501 units. Indus Motor (INDU) and Honda Car (HCAR) sales registered growths of 68 percent YoY and 46 percent YoY, respectively. However, Pak Suzuki Motor Company (PSMC) sales declined by 40 percent YoY.
Kia Lucky Motors (non-member of PAMA) continued to perform well. As per our channel checks, the company recorded car sales of ~1,500 units in Jul-2020.
Moreover, car sales increased by 36 percent MoM in Jul-2020 as COVID-19 lockdowns ease with car assemblers ramping up production levels to meet pent-up demand of consumers, which is evident from 1-3 months of delivery time from the date of booking.
All three main car assemblers reported MoM increases, with INDU reporting the highest increase of 60 percent MoM, followed by PSMC (+28 percent MoM) and HCAR (+23 percent MoM).
Atlas Honda (ATLH) recorded motorbike sales of 94,003 units in Jul-2020, up 17 percent YoY and 4 percent MoM.
Tractor sales (excluding Orient) in Jul-2020 are up 17 percent YoY, while down by 32 percent MoM. Millat Tractors (MTL) and Al Ghazi Tractors (AGTL) sales increased by 14 percent YoY and 25 percent YoY, respectively. The demand for cars to grow stronger as lower interest rates for auto financing has revived demand for new cars.
