By Sarfaraz Abbasi
Pakistan Automotive Manufacturers Association (PAMA) has released monthly sales data of the automobile industry for the month of July 2021. The data reveals that the automobile industry has witnessed an impressive across-the-board sales performance except for the Bus and Motorcycle segments.
According to the data, during the first month of the new fiscal year, 2022 sales of the cars has increased by 114 percent Year on Year basis to 24,918 units of Cars, LCVs, and SUVs were sold as compared to 11,659 recorded during the same month of the last year. Similarly, when data were compared on the monthly basis, it showed that the sales of the cars posted a handsome growth of 88 percent. Similarly, tractors and Trucks posted a stunning growth in sales of 20 percent and 47 percent respectively.
It is safe to assume that the major reason behind rip-roaring growth in the sales of the cars is the reduced prices of the small cars due to the government’s decision of reducing the general sales tax on locally assembled cars up to 850cc to 12.5 percent from 17 percent in the budget 2021-22 in addition to the exemption of federal excise duty (FED) and value-added tax. Moreover, availability of the auto financing at a lucrative rate due to the expansionary monetary policy of the State Bank of Pakistan also contributed.
Tractors sales were up by 20 percent year on year to 4,332 in 1MFY22 (1st month of the Fiscal Year 2022) as against the sales of 3,613 units recorded one year ago.
During July 2021, industry sales of the motorcycle dropped by 11 percent to 133,426 units compared to sales of 149.921 units recorded in the same period last year. Atlas Honda Limited posted a 6 percent growth in sales to 100,002 units which makes a 75% mark share.