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Pakistan Autos_Sales hit a 27-month low, (AKD Daily, Oct 13, 2022)

Sales hit a 27-month low

Total industry sales in Sep’22 clocked in at 13,480 units (-50%YoY/-16%MoM), consisting
of 9,213 passenger cars (-51%YoY/+3%MoM), 1,740 LCVs (-47%YoY/-35%MoM), 323
trucks (-31%YoY/+9%MoM), 55 buses (+34%YoY/+20%MoM). The impact of the persistent
import restrictions is evident, with the sales for passenger cars remaining flat MoM.
The consequences of the floods have severely impacted the sales of tractors with 2,149
sold, down 51%YoY and 46%MoM to cap off a devastating quarter for the industry.
 Segment-wise, passenger cars in the 1000cc range posted a gain of 95%MoM with 1,517
units sold, while declining by 68%YoY. Sales for the 800cc & below segment rose by 18%
MoM and were down 45%YoY. The slump was majorly felt by the 1300cc & above segment,
wherein volumes were down by 17%MoM and 46%YoY.
 Amongst major OEMs, PSMC/INDU/HCAR posted sales of 6,006/2,617/1,280 units, declining
by 46%/58%/65%YoY. On MoM basis, PSMC posted a gain of 52%MoM owing to the
delivery of excess production in July and August. On the flipside, INDU/HCAR have posted
declines of 32%/29%MoM in Sep’22.
 On a quarterly basis, industry sales in 1QFY23 dropped by 47% compared to SPLY. In line
with this, passenger car sales declined by 50%YoY while LCV & Pickup sales were down
by 48%YoY. The restrictions on imports of CKD kits for the local OEMS have caused catastrophe
in the sector. To recall, SBP imposed an import restriction based on the average of
monthly imports from March to June for each OEM, then allowing 50%/60%/70% of the
average to be imported in Jul/Aug/Sep. Tractor sales have also been impacted, with a
30%YoY decline in 1QFY23.
 AGTL has fared better than MTL, with a 6% gain MoM, albeit down 29%YoY. MTL on the
flipside has suffered a major hit on sales due to being more heavily concentrated in Sindh
(with the province being the most impacted by the floods), with sales down 75%MoM
and 72%YoY. Tractor sales also suffered a major decline in 1QFY23, declining by 30%YoY,
with MTL sales down 42%YoY while AGTL had a more perseverant performance with a
14% decline compared to 1QFY22.