Karachi, November 14, 2022 (PPI-OT): Pakistan Autos: Recovering from the low base

The total industry sales in Oct’22 clocked in at 15,585 vehicles (-42%YoY/+16%MoM), consisting of 11,129 passenger cars (-36%YoY/+21%MoM), 2,240 LCVs (-38%YoY/+29%MoM), 257 trucks (-42%YoY/-20%MoM) and 69 buses (+60%YoY/+25%MoM). Sales in the month have recovered from October, owing to better inventory management by OEMs along with the low-base effect from last month.

Segment-wise, the 1300cc segment emerged as the least favourite, remaining flat MoM while declining by 45%oYoY. The 800cc and below segment saw it volumes increase by 50%MoM along with a 25%MoM gain by the 1000cc segment, while both segments declined by 28%YoY. As prices of offerings keep rising, demand is bound to shift downwards from the pricier segments towards the more affordable ones. Moreover, the localization of the lower segments is generally higher, helping production. Hence, the start of the recovery in sales can be anticipated from the 800cc segment and make its way upwards.

Amongst major OEMs, PSMC/INDU/HCAR posted sales of 8,003/3,374/1,425 units, declining by 22%/51%/46%YoY respectively. On the monthly basis, PSMC posted the largest gain of 33%MoM owing to the delivery of excess production in July and August along with improved production in Oct. Moreover, INDU/HCAR have posted gains in offtakes of 29%/11%MoM in the month.

Tractor sales have decreased by 12%MoM/65%YoY to clock in at 1,890 units in the month. We have seen a flip in the sales of MTL and AGTL, with MTL sales increasing by 136%MoM and AGTL sales decreasing by 74%MoM to post sales of 1,503 units and 387 units respectively. On a yearly basis, the companies have witnessed declines of 54%/79%YoY.