KARACHI: Car sales plunged 42 percent year-on-year to 10,968 units in July as all three automakers jacked up prices, while new taxes also discouraged people to buy new vehicles, industry data showed on Monday.
Pakistan Automotive Manufacturers Association’s (Pama) data showed passenger car sales were recorded at 18,875 units during the same month of last year. With exception to Suzuki’s new Alto and buses, almost all variants of four wheelers and above vehicles, rickshaws and motorcycles recorded decline in sales.
Analysts said increase in prices of almost all models dented car sales during the last fiscal year. Besides, post-budget taxation impacts also discouraged citizens from buying new cars. “I am unable to buy new car due to huge increase in prices and regulations,” Naveed, a citizen, said without disclosing his second name. He used to keep a car in the past, but now uses motorcycle for transportation.
An analyst said imposition of excise duty on all engine size vehicles caused prices to increase further, resulting in decline in sales.
In July, 1300cc and above car sales dropped 63 percent to 3,607 units compared with 9,659 units sold during the same month in the previous year. Sale of Toyota Corolla decreased 57 percent to 1,981 units as against 4,566 units sold during the corresponding month a year earlier, while sales of Honda Civic and City were down 68 percent to 1,452 units compared with 4,609 units a year earlier.
In July, Suzuki Cultus and Suzuki WagonR – 1000cc cars – witnessed drop in sales by 54 percent year-on-year to 2,051 units as against 4,433 units a year earlier. Under 800cc cars, sales, however, increased 11 percent to 5,310 units because of Suzuki Alto, which saw sale of 4,584 units. Cars, under the category, recorded 4,783 in sales in the corresponding month a year ago
Automaker Pak Suzuki decided to discontinue its popular car brand Mehran, which saw decline in sale by 89 percent to 394 units as against 3,437 units in the same month a year earlier. In July, sale of trucks dropped to 407 units from 584 units during the corresponding month last year. However, sale of buses increased to 118 units from 110 units.
The Pama data showed that sales of jeeps decreased to 316 units in July from 592 units during the corresponding month last year. Due to increase in the prices, only 74 units of Toyota Fortuner were sold in July 2019 compared to 220 units in July 2018. Sale of tractors decreased to 3,089 units in July 2019 from 3,872 units during the corresponding month last year.
Sales of rickshaws and motor bikes decreased to 107,427 units from 150,664 units. Honda’s bike sales dropped to 80,005 units from 90,009 units. Suzuki saw a decline in sales to 1,614 bikes from 1,901 units sold during the same month a year ago.