Auto sector Sales Surged by 150% in 11 Months of FY2022. The demand for cars has risen to new heights in recent months, due to the arrival of several new models and disposable income savings.
A report from Business Recorder claims that the auto sector has registered a massive growth in volumetric sales year-over-year (YOY) up until the 11th month of the fiscal year 2022 (11 Months of FY2022).
The report claims that the auto sector has recorded roughly 270,000 sales in 11 Months of FY2022. It adds that these figures are exclusive of Kia, Changan, and other new automakers’ sales. With their sales accounted for, the total figures.
While this is a good news for the economy of the Pakistan that auto sector is growing at fast rate.
According to the recent data, Pak Suzuki Motor Company (PSMC) continues to be the leading automobile company with 130,000 units sold and YoY growth of 62 per cent.
Toyota follows closely behind with 60,000 units sold and YoY growth of 59 per cent. Honda rounds out the top three with 30,000 units sold and YoY growth of 37 per cent.
Although sales have been strong in the past year, they are expected to take a sharp decline starting in the second quarter (Q2) of FY2023.
Automakers have predicted a slump in sales of up to 25 per cent, citing rising shipping costs, raw material costs, fuel costs, local currency depreciation, and the subsequent price hikes.
However, some analysts believe that sales will remain strong up until Q1 FY2023 thanks to pre-booked orders. They say that it would be interesting to see how the sales hold up in Q3 FY2023 or Q4 FY2023, as that is when the car and fuel price hikes will truly begin taking a toll on the demand.