Locally manufactured car sales has exhibited the growth of 20 percent during August 2018 to 17,662 units as compared with 22,095 units in the same month of the last year, according to latest numbers released by the Pakistan Automotive Manufacturers Association (PAMA).
Auto sector analysts attributed this fall to Eid holidays, restriction on non-filers from purchasing new cars, uptick in car prices and high base effect.
However, they believe economic slowdown, rising interest rates and arrival of new players would play crucial role as new customers may wait for new upcoming models. In the 1300cc and above category, sales displayed a decline of 12 percent YoY / 17 percent MoM to 8,028 units in Aug’18 amid 25 percent MoM drop in sales of Civic/City. In 1,000cc category, dispatches fell by 4 percent YoY and 14 percent MoM due to religious holidays. In the below 1,000cc category, Mehran sales registered massive decline of 33 percent YoY and 42 percent MoM to 2,318 units, we believe launch of new United Bravo (800cc car) which is equipped with more features and also price competitive led sales decline. In LCVs+4×4 category, total sales stood at 3,486 units, down by 30 percent YoY and 9 percent MoM due to economic slowdown.