Karachi, January 12, 2022 (PPI-OT):Dec’21 total industry sales of 32,142 vehicles (+35%MoM/+82%YoY), consisting of 24,462 passenger cars (+59%MoM/117%YoY), 2,869 LCVs (-15%MoM/+6%YoY), and 299 trucks (-39%MoM/+3%YoY) wrapped up the year on high note, a welcome change from the year end trend in sales generally seen.

CY21 total industry sales of 298,006 units (+79%YoY) consist of 198,930 passenger vehicles (+91%YoY), 38,473 LCVs (+95%YoY) and 4,616 trucks (+52%YoY), witnessing a sharp rebound as opposed to the downtrend witnessed during the preceding year, taking annual unit sales back to the levels witnessed in CY17-18. The budgetary measures announced back in June provided much needed stimulus to the industry.

Segment-wise, 800cc and below category emerged as the clear winner, witnessing a growth of 120%YoY to 64,742 units followed by the 1,000cc segment (43,328 units, +105%YoY). The 1,300cc+ premium segment, however, still remained the top most volume driver, clocking in at 90,860 units (+69%YoY). The segment-wise sales composition stood at 46/22/33% for 1,300cc+/1,000cc/800cc segments vs 52/20/28% in CY20.

Amongst major OEMs, PSMC/INDU/HCAR sold 122,808/69,169/35,173 vehicles during the period, inflating 108/71/61%YoY, implying annual plant utilization (on stated double shift capacity) of 82/89/70% vs. 39/52/44% for CY20 when the industry dealt with a lukewarm demand outlook amidst pandemic inflicted production hurdles.

The year CY22 remains crucial for the industry where we expect the local OEMs to capture the market share held by imported CBUs due to increasing protective duties (read: FED and RD). On the contrary, the mini budget has also doubled the rate of FED on vehicles above 1,000cc while the GST on 1,000cc segment has been reverted back to 17% thereby rolling back the incentives given in the FY22 budget.