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Car sales see 30% decline YoY in Sept amid high prices, interest rates

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1 year ago

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  • PAMA says 6,410 cars sold in Sept 2023. 
  • In Sept 2022, 9,213 units were sold.
  • Sales rise 8% compared to August.

KARACHI: Car sales saw a 30% decline year-on-year in September amid high prices and interest rates, The News reported citing an industry data body.

The Pakistan Automotive Manufacturers Association (PAMA) said 6,410 cars were sold in September 2023 compared to the 9,213 sold in the same month last year. However, sales rose 8% in September compared to August due to the lifting of import restrictions.

For the first quarter of the fiscal year 2023/24, passenger car sales dropped 44% to 16,021 units, compared with 28,571 units in the same period last year.

Sales of 1,300cc and above cars declined by 38% to reach 2,939 units, last year sales of such cars was 4,715 units. However, it increased by 27% against 2,310 units in August.

In September, 691 units of 1,000cc were sold compared to 1,517 units sold during the same month last year. Below 1,000cc vehicles recorded a sale of 2,780 units, down 7% against 2,981 units of last year. This category of cars also recorded a month-on-month decline against 2,935 units in August.

At least 185 units of buses and trucks were sold in September 2023 compared to the 378 units sold in the same month last year. Sales increased on a month-on-month basis against 167 units in August.

On the other hand, the sale of jeeps and pick-ups declined to 1,902 units from 2,075 units sold during the same period last year. But like all other categories, it saw an increase on a month-on-month basis. Sales of tractors rose to 5,445 units from 2,149 units in September last year.

The sale of rickshaws and motorbikes increased to 107,084 units during September 23 against 99,581 units in the same period last year.

Topline Securities Analyst Sunny Kumar credited the monthly increase in car sales to the easing of import issues for completely knocked down (CKD) kits on which the car manufacturers rely for the assembly of cars.

“However, escalating car prices, expensive auto financing and the low purchasing power of consumers are among the primary reasons for the decline in year-on-year sales,” he added.

Among manufacturers, Honda Atlas Car (HCAR) recorded the highest increase of 99% month-on-month, as it sold 1,342 units in Sep-2023 but it was largely due to the low base the company had the previous month when it was only able to sell 674 units.

Pak Suzuki (PSMC) was the only one that recorded a decline of 1% month-on-month to 4,234 units in Sep-2023 led by 8% month-on-month decline in sales of Alto. Other variants including Ravi, Bolan and Cultus recorded an increase of 58% month-on-month, 38% month-on-month and 9% month-on-month, respectively. Swift and Wagon-R sales remain flat month-on-month at 506 and 359 units in Sep-2023.

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Business

Dar chairs the CCOP meeting; Blue World’s bid offer of Rs.10 billion is rejected.

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2 days ago

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The Foreign Minister/Deputy Prime Minister chaired the Cabinet Committee on Privatization meeting.

Other committee members who attended the conference included the Federal Secretaries of several Divisions, the Ministers of Finance and Revenue, Industry and Food, Commerce, Power, and Privatization.

The CCOP took the PC Board’s recommendation into consideration and suggested that Blue World’s bid of 10 billion rupees for the sale of 60% of PIACL’s shares be rejected. The bid was rejected by the CCOP, who chose to follow the PC Board’s advice.

The government’s determination to sell out PIACL through government-to-government or privatization was reaffirmed by the CCOP.

The CCOP was pleased with the Aviation Division’s evaluation of PIACL’s sound financial standing.

Additionally, the CCOP established a committee, chaired by the Minister of State for Finance, to assess potential transaction possibilities for the privatization of the Roosevelt Hotel and the appropriate modes of adoption in light of existing legal rules.

Prior to its subsequent meeting, the CCOP also ordered that all difficulties be resolved and an agreement for the selling of services to an international hotel be concluded.

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Business

The KSE-100 Index has surged by 790 points, resulting in an all-time peak for the stock exchange.

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The benchmark KSE-100 Index increased by 790 points, marking a new all-time high for the Pakistan Stock Exchange (PSX) at 94,982 points.

The record-breaking performance underscores a surge of optimism and investor confidence in the stock market.

As investors responded to favorable economic signals, the market experienced a significant increase of over 500 points in early trading. Later, the KSE-100 Index reached another record level of 94,786 points after adding 594 points to its upward trajectory.

This positive development comes as the State Bank of Pakistan’s (SBP) foreign exchange reserves saw an increase of $84 million, reaching $11.26 billion during the week ending November 8, according to data released by the central bank on Thursday.

This represents an increase of 0.75% from the previous week. In addition, the nation’s total liquid foreign reserves experienced a modest increase, increasing by $33.7 million or 0.21% week-on-week to $15.97 billion.

In contrast, commercial banks’ reserves experienced a decline of $50.3 million or 1.06%, ultimately settling at $4.71 billion.

Furthermore, the economic team of Pakistan has expressed confidence in the discussions with the International Monetary Fund (IMF). Minister of State for Finance Ali Pervaiz Malik, in an exclusive conversation with Samaa TV, claimed talks were moving in a positive direction.

Highlighting improvements in Pakistan’s economic conditions, Malik noted substantial progress over the past six months to a year. He emphasized that Pakistan’s current economic situation has seen significant enhancement, with a reduced current account deficit of only $100 million in the first quarter, a reflection of the government’s strategy to increase remittances and boost exports.

Malik shared that discussions with the IMF are primarily focused on external financing, and while there have been speculations about a potential mini-budget or an increase in the petroleum levy, he clarified that these are currently premature considerations.

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Positive IMF negotiations propel KSE-100 Index above 94,000 points

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3 days ago

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As a result of investors’ optimism about the reported progress in the continuing talks with the International Monetary Fund (IMF), the Pakistan Stock Exchange (PSX) experienced a robust surge.

The benchmark KSE-100 Index of the PSX, which tracks market sentiment, rose 713 points to a new record high of 94,068 points, breaking above the 94,000-point barrier, as the trading session began.

Early in the day, the stock market began its upward trajectory as the KSE-100 Index steadily rose, gaining 574 points to reach 93,932 points. A possible agreement with the International Monetary Fund (IMF) might lead to more fiscal stability and back Pakistan’s economic reforms, which is why investors are so optimistic about the country’s future.

Officials from the Federal Board of Revenue (FBR) informed the International Monetary Fund (IMF) on Wednesday that the government would not be introducing a mini-budget and would instead continue to aim to collect Rs12,970 billion in taxes each year.

In line with continuing discussions with the Fund, FBR sources revealed that petroleum goods will not be subject to the General Sales Tax (GST).

The fact that Pakistan’s tax-to-GDP ratio has increased from 8.8% to 10.3%, a 1.5% gain viewed as a favorable sign of Pakistan’s fiscal policies, has reportedly pleased the IMF, who has voiced satisfaction at Pakistan’s recent economic performance.

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