The Pakistan Auto Manufacturers Association (PAMA) has released the industry sales volume data for August 2023. It’s worth noting that the industry has shown a remarkable recovery, with a 23% month-on-month (MoM) increase compared to July 2023. This substantial MoM growth can be attributed to higher sales in several categories, including cars, tractors, motorcycles, and light commercial vehicles (LCVs), which witnessed increases of 60%MoM, 48%MoM, 20%MoM, and 13%MoM, respectively, in August 2023 compared to the previous month of July 2023.
Despite challenges such as reduced purchasing power, historically high open market spreads, and lingering uncertainty regarding LC (Letter of Credit) matters, the car segment’s sales have experienced a significant revival, surging by 60%MoM to reach 5,909 units in August 2023 when compared to July 2023. In the car segment, vehicles with engine capacities of up to 1000cc, 1300cc, and 1300cc & Above have seen increases of 85%MoM, 57%MoM, and 37%MoM, respectively, during August 2023 when compared to the previous month.
In a sequential analysis, PSMC (Pakistan Suzuki Motor Company), Hyundai, and HCAR (Honda Atlas Cars) achieved notable growth rates of 75%, 37%, and 36%, respectively. However, INDU (Indus Motor Company) volumes increased by a relatively modest 13%, primarily due to a 10-day plant shutdown and ongoing challenges related to the import of raw materials, despite some relaxation in import restrictions.
Below are the Top Ten Best Selling Cars in Pakistan for the month of August’ 2023
|4||Honda City & Civic||498|
|11||HONDA BR-V & HR-V||182|
Taking a closer look at specific manufacturers:
In August 2023, INDU (Indus Motor Company) reported sales of 1,548 units, reflecting a 13% month-on-month (MoM) increase and an 8% year-on-year (YoY) rise. This uptick in sales was primarily driven by a slight recovery in demand. However, during the first two months of FY24, volumes plummeted by approximately 37%YoY, largely due to the unavailability of CKD kits. It’s noteworthy that the company also had to shut down its plant for ten days in August 2023 due to import restrictions and sluggish demand for passenger vehicles. Consequently, INDU’s market share dipped to 20% in August 2023, down from 27% the previous month.
Combined sales volumes for Toyota Corolla & Yaris reached 1,119 units, marking a 5%MoM increase but a substantial 61%YoY decline. Meanwhile, sales of Fortuner and IMVs (Innovative Multi-Purpose Vehicles) stood at 429 units, showing a robust 43%MoM increase compared to the lows experienced in July 2023.
In the case of PSMC (Pakistan Suzuki Motor Company), August 2023 sales reached 4,268 units, surging by 75%MoM. This growth was primarily driven by the sales of Alto, Cultus, and Wagon R, which increased by 92%, 72%, and 47%, respectively. Suzuki Alto led the sales charts with 2,769 units, followed by Swift, Wagon R, and Cultus, with 506 units, 359 units, and 305 units sold during the month, respectively. PSMC managed to improve its market share by 7 percentage points MoM, reaching 56%, even though the plant remained shut for 14 days during the month.
HCAR (Honda Atlas Cars) reported sales of 674 units in August 2023, representing a 36%MoM increase as demand slightly recovered. Civic & City sales improved significantly to 492 units, marking a 1.4x increase. However, sales of HR-V and BR-V combined dropped to 182 units, down 36%MoM. HCAR’s market share for the month arrived at 9%, down 1 percentage point MoM.
Hyundai sold 778 units during August 2023, up 37%MoM. Notably, sales of high-end models like Tucson, Sonata, and Elantra reached 465 units, 101 units, and 92 units, respectively. The company did experience a slight drop in market share of 1 percentage point MoM, settling at 10%. However, during the first two months of FY24, there was a 37%YoY drop in volumes due to the unavailability of CKD kits and decreased demand.
SAZGAR emerged as a newcomer in the jeep market, selling 298 units in August 2023, marking a 1.2xMoM increase. The company gained a market share of 1 percentage point MoM, reaching 4%.
Tractor sales showed a robust 48%MoM increase, with industry sales reaching 2,678 units, as per PAMA reported numbers. AGTL (Al-Ghazi Tractors Limited) and MTL (Millat Tractors Limited) reported volumes of 1,555 and 2,412 units, respectively. This growth in tractor sales can be attributed to improved crop yields, which bolstered farmers’ income and purchasing power.
Volumes for trucks and buses rose by 14%MoM, with a combined total of 187 units. HINO and Master reported significant upticks in sales, with 30 units and 75 units sold, representing increases of 36%MoM and 32%MoM, respectively.
|Passenger Cars, LCVs, Jeeps||Aug’23||Aug’22||YoY||Ju123||MoM||2M FY24||2M FY23||YoY|
|Corolla & Yaris||1.119||2,901||-61%||1,067||5%||2,186||4,635||-53%|
|Fortuner & IMVs||429||975||-56%||301||43%||730||1.616||-55%|
|Civic & City||492||1,436||-66%||208||1.4x||700||3,844||-82%|
|BR-V & HR-V||182||373||-51%||286||-36%||468||502||-7%|
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