Automotive gross sales contract 13% in August 2021


KARACHI:

After registering a triple-digit progress in July 2021, the auto gross sales in Pakistan declined 13% in August on a month-on-month foundation and stood at 21,751 items primarily attributable to a excessive base impact in July.

In response to knowledge launched by the Pakistan Automotive Producers Affiliation (PAMA) on Friday, automobile gross sales had been calculated at 24,918 items in July 2021.

“Pakistan’s automobile gross sales in August 2021 clocked in at round 24,000 items (if KIA, a non-member of PAMA is taken into account),” mentioned Topline Securities analyst Umair Naseer in a report.

“On a month-on-month foundation, automobile gross sales had been down attributable to excessive base as Indus Motor and Pak Suzuki had recorded highest-ever month-to-month gross sales in July 2021 attributable to announcement of incentives in funds and a powerful demand backlog.”

Echoing his views, Taurus Securities analyst Mustajab Ali Kazmi mentioned that prospects held their orders in June and rushed to e book automobiles in July after the federal government introduced main incentives for patrons within the funds for 2021-22.

Because of this, vehicle gross sales soared considerably in July and now the degrees had been declining again to regular, therefore a contraction was skilled, he mentioned.

Cedar Capital senior analysis analyst Waqas Mustafa added that the worldwide chip scarcity had lastly hit Pakistan and automobile firms positioned orders for sure fashions on maintain.

“The delay in dispatching orders resulted in a decline in automobile gross sales,” he mentioned.

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Firm-wise, Pak Suzuki Motor Firm remained the most important laggard as its gross sales fell 21% month-on-month to 12,062 items in August 2021.

Indus Motor Firm fared no higher and recorded a decline of 16% in its gross sales, which stood at 5,639 items within the month below assessment.

On the flip aspect, Honda Atlas Vehicles posted a 40% improve in its vehicle gross sales that got here in at 3,230 items.

“Honda Atlas gross sales had been up in August 2021 amid launch of its new mannequin of Honda Metropolis throughout the month,” mentioned Naseer.

Equally, gross sales of Hyundai Nishat Motor elevated 53% to 712 items.

Naseer highlighted that Hyundai Nishat posted progress attributable to robust demand for its just lately launched automobiles – Hyundai Elantra and Sonata.

“On a year-on-year foundation, vehicle dispatches rose 85% in August 2021, led by financial restoration, low rates of interest and the launch of latest fashions,” Naseer mentioned within the report.

Printed in The Categorical Tribune, September 11th, 2021.

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