RECORDER REPORT

KARACHI: The sale of cars has been declined by eight percent in July to 11,501 units.

Indus Motor Company (IMC) and Honda Car (HCAR) have registered 68 percent YoY and 46 percent YoY growth in sales, respectively. However, the sale of Pak Suzuki Motor Company (PSMC) has shown a 40 percent YoY decline. The Kia Lucky Motors, which is not a PAMA member, sold 1,500 units in July-2020.

The car sales had increased by 36 percent MoM in July-2020 as Covid-19 lockdown ease with car assemblers ramping up production levels to meet pent-up demand of consumers, which is evident from 1-3 months of delivery time from the date of booking.

Furthermore, it said all three main car assemblers reported MoM increase, with IMC reporting the highest increase of 60 percent MoM, followed by PSMC (+28 percent MoM) and HCAR (+23 percent MoM).

Meanwhile, Atlas Honda (ATLH) recorded motorbike sales of 94,003 units in July-2020, up 17 percent YoY and 4 percent MoM.

The tractor sales (excluding Orient) in Jul-2020 are up 17 percent YoY, while down by 32 percent MoM. Millat Tractors (MTL) and Al Ghazi Tractors (AGTL) sales increased by 14 percent YoY and 25 percent YoY, respectively.

Topline expected that the demand for cars to grow stronger as lower interest rates for auto financing has revived demand for new cars and added that over-weight on Pakistan automobiles with buy ratings on IMC, HCAR and MTL.