Business

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

Published

1 year ago

Farwa

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.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

18 hours ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.