KARACHI: Car sales rose 18% to 78,910 units in the first six months of the current financial year 2020/21 as consumer demand was seen to return to normal with the help of low interest rates, industry data showed. Revealed on Monday.
According to Topline Securities, sales of Suzuki, Indus Motors, Honda and Hyundai cars were recorded at 67,019 units in the same period last year, according to Pakistan Automotive Manufacturers Association. Demand is expected to continue to grow throughout the year. “We expect the demand for cars to strengthen due to the low interest rate environment and increased economic activity,” said Fawad Basir, an analyst at Topline Securities.
Passenger car sales rose 12.6 percent to 11,247 units in December from 9,987 units in the same period in 2019. However, sales were lower than the 11,914 units sold in November 2020. Jeeps, buses, tractors, three-wheelers and motorcycles have also shown a feat to increase sales.
Car sales generally declined in December as buyers waited for the new model in the new year, an analyst said. Thus, there was a decline in sales compared to November. He said that with the arrival of newcomers, buyers get the option and there is a possibility of increase in sales in January as buying on lease is also increasing.
In December, car sales of 1,300 cc and above increased by 49% to 4,838 units from 3,246 units in the same month last year. The biggest reason for the increase in sales during the period was sales of Toyota Yaris, which sold 1,440 units. Toyota Corolla’s sales fell 13.9 percent to 1,795 units from 2,085 units in December 2019, while Honda Civic and City’s sales rose 73 percent from 884 units in the same period in 2019. Reached 1,529 cars. The Suzuki Swift lost 74 cars, down from 277 sold last year. Suzuki did not make Swift cars in December.
During the month, sales of 1,000cc cars – Suzuki Cultus and Suzuki Wagon R – increased by 34.58% to 2,860 units from 2,125 units in the same period last year.
Under 800cc cars, sales in December fell 23 percent to 3,549 units from 4,616 units in the same period in 2019. Suzuki’s new Alto saw a drop in sales, from 3,700 units sold in the same month in 2019 to 2,954 units.
Sales of buses and trucks increased marginally from 315 units to 342 units during the same period in December. Jeep sales increased three and a half times to 892 units from 197 units sold in December 2019. This was mainly due to a 254% increase in sales of Toyota Fortuner from 76 units to 269 units and Hyundai Tucson’s sales of 388 units. Pickup sales fell slightly to 1,817 units from 1,916 units in December 2019. Sales of tractors increased by 188% to 3,320 units from 1,815 units in December. Sales of rickshaws and motorbikes increased by 22% to 157,116 units from 228,866 units in December. New entrants to Pak Autospace Hyundai Nishat sold 511 units (an increase of 8% per month) in December 2020, while Lucky Motor sold about 600 units.