Business

Car sales see 30% decline YoY in Sept amid high prices, interest rates

Published

1 year ago

Farwa

PAMA says 6,410 cars sold in Sept 2023.
In Sept 2022, 9,213 units were sold.
Sales rise 8% compared to August.

KARACHI: Car sales saw a 30% decline year-on-year in September amid high prices and interest rates, The News reported citing an industry data body.

The Pakistan Automotive Manufacturers Association (PAMA) said 6,410 cars were sold in September 2023 compared to the 9,213 sold in the same month last year. However, sales rose 8% in September compared to August due to the lifting of import restrictions.

For the first quarter of the fiscal year 2023/24, passenger car sales dropped 44% to 16,021 units, compared with 28,571 units in the same period last year.

Sales of 1,300cc and above cars declined by 38% to reach 2,939 units, last year sales of such cars was 4,715 units. However, it increased by 27% against 2,310 units in August.

In September, 691 units of 1,000cc were sold compared to 1,517 units sold during the same month last year. Below 1,000cc vehicles recorded a sale of 2,780 units, down 7% against 2,981 units of last year. This category of cars also recorded a month-on-month decline against 2,935 units in August.

At least 185 units of buses and trucks were sold in September 2023 compared to the 378 units sold in the same month last year. Sales increased on a month-on-month basis against 167 units in August.

On the other hand, the sale of jeeps and pick-ups declined to 1,902 units from 2,075 units sold during the same period last year. But like all other categories, it saw an increase on a month-on-month basis. Sales of tractors rose to 5,445 units from 2,149 units in September last year.

The sale of rickshaws and motorbikes increased to 107,084 units during September 23 against 99,581 units in the same period last year.

Topline Securities Analyst Sunny Kumar credited the monthly increase in car sales to the easing of import issues for completely knocked down (CKD) kits on which the car manufacturers rely for the assembly of cars.

“However, escalating car prices, expensive auto financing and the low purchasing power of consumers are among the primary reasons for the decline in year-on-year sales,” he added.

Among manufacturers, Honda Atlas Car (HCAR) recorded the highest increase of 99% month-on-month, as it sold 1,342 units in Sep-2023 but it was largely due to the low base the company had the previous month when it was only able to sell 674 units.

Pak Suzuki (PSMC) was the only one that recorded a decline of 1% month-on-month to 4,234 units in Sep-2023 led by 8% month-on-month decline in sales of Alto. Other variants including Ravi, Bolan and Cultus recorded an increase of 58% month-on-month, 38% month-on-month and 9% month-on-month, respectively. Swift and Wagon-R sales remain flat month-on-month at 506 and 359 units in Sep-2023.

Business

SFD and Pakistan Sign Two Deals Totaling $1.61BLN

Published

2 days ago

Farwa

Two agreements totaling $1.61 billion have been inked by Pakistan and the Saudi Fund for Development to improve their bilateral economic cooperation.

Business

Saudi Arabia and Pakistan sign an MOU to strengthen their auditing industry collaboration.

Published

2 days ago

Farwa

A spokesperson for the office of the Auditor-General of Pakistan (AGP) announced on Monday that the two countries have signed a Memorandum of Understanding (MoU) to strengthen cooperation in public sector auditing through improved cooperation between audit institutions of both countries, as well as training programs and the exchange of trainers.

This comes as a group from Saudi Arabia’s General Court of Audit (GCA), headed by GCA President Dr. Hussam bin Abdulmohsen Alangari, arrived in Pakistan on Sunday for a four-day visit.

The agreement was signed during AGP Muhammad Ajmal Gondal’s meeting with the Saudi delegates, aiming to strengthen audit cooperation, enhance knowledge-sharing, and improve governance, transparency and accountability in government spending.

Public relations officer Muhammad Raza Irfan of the AGP’s office told Arab News that the deal will further advance bilateral collaboration between Saudi Arabia and Pakistan in addition to enhancing professional ties between the two nations’ auditing institutions.

In a statement released from his office, AGP Gondal was cited as saying, “This collaboration marks a significant step toward fostering international cooperation in auditing.”

“The exchange of ideas and methodologies will undoubtedly strengthen our capacity to meet emerging challenges and set new benchmarks for public accountability.”

Discussions at Monday’s meeting focused on fostering closer ties between the Supreme Audit Institutions (SAIs) of Pakistan and Saudi Arabia, sharing innovative audit methodologies, and planning collaborative initiatives for the future, according to the AGP office.

The two parties decided to increase their knowledge of theme, environmental, and impact audits as well as to exchange best practices in audit standards, performance audits, and citizen participation audits.

The statement added, “It also agreed to exchange trainers, address new auditing challenges, plan cooperative audits, including a performance audit on the oil and gas sector in 2025, and work together on training programs.”

Both sides reaffirmed their shared commitment to promoting transparency, accountability and excellence in public sector auditing.

Business

The government chooses to continue the PIA privatization process.

Published

2 days ago

Farwa

The Pakistan International Airlines (PIA) privatization process will be restarted by the federal government, and expressions of interest would be requested within the month. Officials stated that the Prime Minister’s Committee on Privatization will convene to make the final decision.

Usman Bajwa, the secretary of the Privatization Commission, gave a briefing on the updated procedure to the National Assembly Standing Committee on Privatization. Additionally, he disclosed that airlines other than PIA are now able to compete with regional carriers thanks to IMF-approved aircraft tax concessions.

Farooq Sattar, the chairman of the privatization committee, underlined the importance of giving PIA workers at least five years of job security. Employee protection will continue to be a top priority and will be resolved prior to bidding, the Privatization Commission promised.

PIA’s liabilities totaling Rs650 billion have already been assumed by the government, and an additional Rs45 billion in outstanding debts must be paid before the privatization process can begin. As of the now, PIA has assets around Rs155 billion and liabilities worth Rs200 billion. It will be necessary for the new buyer to expand the fleet by 15 to 20 aircraft.

Additionally, the Privatization Committee has sought a timeline for the privatization of Faisalabad, Gujranwala, and Islamabad Electric Supply Companies. Officials stated that after the appointment of a financial advisor, the privatization process for these companies will accelerate.