FLASHNEWS:

AKD Securities Limited – AKD Daily (September 14, 2022)

Karachi, September 14, 2022 (PPI-OT): Pakistan Auto: Auto sales: The slump continues

Total industry sales in Aug’22 clocked in at 15,962 units (-38%YoY/+11%MoM), consisting of 8,980 passenger cars (-50%YoY/-13%MoM), 2,665 LCVs (-31%YoY/+81%MoM), and 295 trucks (-47%YoY/+26%MoM). The increase in sales on MoM basis is due to the low-base effect from July, while on the flipside, production woes persist as are evident by the YoY declines, with passenger car production down by 45%YoY. Passenger car sales have hit 4 digits for the first time since Aug’20, further shining light on the crisis the industry is going through.

Segment-wise, the 1000cc segment emerged as the least favourite category, posting a drop of 83%YoY followed by the 800cc and below segment, declining 59%YoY and the 1300cc and above segment witnessing decline of 22%YoY. Volumes witnessed similar declines on a MoM basis with the 1,000cc and 800cc segments declining by 18%/49%MoM, while the 1,300cc+ segment posted an increase of 27%MoM.

Amongst major OEMs, PSMC/INDU/HCAR posted sales of 3,954/3,876/1,809 units, declining by 67%/31%/44%YoY. On MoM basis, INDU posted a gain of 63%MoM owing to the low-base effect from July. PSMC/HCAR have posted declines of 41%/29%MoM for Aug’22.

One caveat to note is, sales of the Corolla and Yaris vehicles for the month (2,901) are higher than the production number (2,216), as the company draws down into previous month’s inventories. On the other hand, production for the Wagon-R, Cultus, Bolan and Ravi have remained noticeably higher than sales in the last two months, while Alto has been dispatched in accordance with production.