The overall sales of the auto industry observed a drastic surge in December 2021, which is likely due to impending price hikes against various vehicles. While Toyota Indus Motor Company (IMC) has lagged behind slightly on a Month Over Month (MoM) basis, all other members of the Pakistan Automotive Manufacturers Association (PAMA) have recorded huge sales figures.
According to the December 2021 data from PAMA, the auto industry has risen in monthly sales with a total of 27,331 units sold, recording an MoM increase of 46 percent and a Year Over Year (YoY) increase of 96 percent.
Last month, IMC sold 6,214 units and recorded an MoM decrease of 2 percent, but a YoY increase of 55 percent in sales. Hyundai Nishat also posted a nominal MoM growth of just 2 percent, but a handsome YoY growth of 49 percent in sales, having sold 762 vehicles last month.
Honda Atlas Cars Limited (HACL) sold 4,708 cars, recording an MoM increase of 56 percent, and a YoY increase of 167 percent in vehicle sales. At the same time, Pak Suzuki Motor Company (PSMC) posted record-breaking sales, having sold 15,503 units and recording an MoM increase of 82 percent and a YoY increase of 104 percent in vehicle sales.
Reports from the market suggest that sales of non-PAMA member companies such as Kia Lucky Motors, MG JW SEZ, Master Changan Motors, Regal Motors, Al-Haj Proton, United Motors, Haval, etc. also increased in December 2021. BAIC has also become a PAMA member but the details of its sales are yet to be revealed.
The sales figures of some of the popular vehicles in Pakistan are as follows:The car industry has witnessed a solid rise in demand in the previous year due to jacked interest rates on car finance, a temporary price decrease, and the arrival of several new cars. However, the demand is likely to drop in the coming days as the government and the State Bank of Pakistan (SBP) are working out ways to manage the towering import bill.
Along with SBP’s plan to control the imports of Completely Built-Up (CBU) vehicles by enforcing restrictions on their financing, the regulatory bodies are considering imposing policy rate hikes to increase interest on auto loans on top of increasing tariff rates in Completely Knocked-Down (CKD) kit import — especially for the vehicles with engine displacement larger than 850cc.
With these possible developments afoot, it will be interesting to see the subsequent strategy from the auto industry.
