Pakistan’s auto sector showed strong growth in May 2022, with sales of around 27,000 units representing a 46% increase compared to the same month last year.
This continued momentum is despite higher car prices and Eid holidays at the start of the month, according to Topline Research auto analyst Sunny Kumar. These results demonstrate the strength of the sector and its continued ability to thrive despite challenges.
According to Ismail Iqbal Securities auto analyst Muqeet Naeem, car sales in May 2022 remained relatively flat, growing by 2% to 22,893 units. He added that, over the first 11 months of the fiscal year, sales had reached 251,000 units; a 50% increase from the 11-month sales numbers, which is the highest ever on record.
Analyst Kumar stated that the 50% increase in auto sales in 11 months of financial year 2022 was led by macro recovery. He went on to say that they expect demand contraction by the end of CY2022 due to higher interest rates, imposition of CVT, increase in advance taxes in the budget for FY23, restrictions on auto financing and the likely third round of price hike by the automobile players.
Hyundai Nishat posted strong numbers registering an increase of 33% month-on-month led by increase in sales of Elantra, 148% month-on-month, and Sonata with 37% month-on-month, said Sunny.
While bike sales in Pakistan decreased by 2% from the month prior in May of 2022, they remained unchanged from the sales figures from May of the previous year. This brings the total sales for the 11 month period of the 2022 financial year down to 1.7 million units, a 4% decline from the previous year.
On the other hand, sales of trucks and buses saw a 3% month-on-month increase in May of 2022, as well as a 23% year-on-year increase. These sales figures bring the total sales for the 11 month period of the 2022 financial year up to 5,909 units,
Auto expert Arsalan Hanif said that the growth in auto numbers is mainly due to pre-budget buying in anticipation of taxes increase.