Pakistan’s Auto sales up 93 pc after lockdown

KARACHI, July 15, 2020:  Auto sales saw a strong recovery of 93 percent month on month (MoM) in Jun-2020, mostly due to low base effect as the lockdown persisted for most part of May.

According to official statistics, some 8,753 units were sold in the last month of FY20.

A more telling barometer has traditionally been YoY, by which standard auto sales have fallen by 50 percent. During the full year, FY20, auto sales have dropped by 53 percent YoY.

Honda Atlas (HCAR) recorded the lowest decline some 22 percent YoY in June among passenger cars, compared to contractions of 59 percent YoY and 53 percent YoY for Pak Suzuki (PSMC) and Indus Motors (INDU), respectively.

Although price increases cannot be ruled out (due to PKR/USD), lower interest rates could compensate high prices and we might see a growth in auto volumes in FY21 (we expect ~30-35% YoY), provided there are no painful surprises on the Covid front.

In the HCV segment, Ghandhara Industries showed the most significant recovery in June with 184 percent  growth (MoM), whereas the company also recorded highest-ever sales of its D-Max pickup of 207 units.

Within tractors, both Millat Tractors (MTL) and Al-Ghazi Tractors (AGTL) experienced significant surge in volumes during the month.

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