Friday, April 19 2024

Auto financing keeps plunging
Consumers remained reluctant to avail costly auto financing, which consequently plunged for the 21st consecutive month ending March 2024 to Rs239 billion, down by 1.4 per cent or Rs3.5bn month-on-month. According to data issued by the State Bank of Pakistan (SBP), the total decline in the last 21 months stood at Rs128bn, down from Rs368bn at the end of June 2022. Expensive financing, due to a 22 per cent interest rate, high monthly loan instalments, and the unbearable prices of vehicles, coupled with consumers’ thin buying power and the SBP’s curbs on financing to soften vehicle demand, have collectively impacted car financing. Sales of cars, LCVs, pickups, and jeeps totalled 69,078 units during 9MFY24, down from 110,898 in the same period last fiscal year.
Related news categories: auto-assembler business economic-indicators

Thursday, April 18 2024

Car sales decline by 36.9% in FY2024
Passenger car sales plummeted to 54,089 units, marking a significant 36.9% decline during the initial nine months of fiscal year 2024 (July to March). This downturn can be attributed to various factors, including soaring inflation, diminished purchasing power, high interest rates, expensive auto financing, and rising car prices, as per data provided by the Pakistan Automotive Manufacturers Association (PAMA). Additionally, PAMA reported significant declines in truck and bus sales by 45.2% and 39% respectively. Sales of Jeeps and pick-ups also saw a decline of 40.3%, while two and three-wheeler sales (motorbikes and rickshaws) decreased by 9.9%. On a contrasting note, sales of tractors experienced a surge, marking a notable rise of 65.8% with 35,199 units sold during the nine-month period. Analysts and experts noted that while the uptick in tractor sales is a positive sign, the automotive industry as a whole continues to grapple with a crisis, despite the favourable terms of the International Monetary Fund (IMF) programme.
Related news categories: auto-assembler business economic-indicators

Tuesday, April 16 2024

Pak Suzuki data ‘leaked’
Pak Suzuki Motor Company Ltd (PSMCL) has said that its corporate data has been leaked due to a cyberattack. In a stock filing on Monday, PSMCL said initial investigations suggest that the server’s data related to human resources, financials, etc., has been ported to a public IP. “We have onboarded a security consultant to conduct a detailed forensic assessment and eliminate potential security threats from the entire infrastructure,” the car assembler said, adding that detailed findings would be concluded after the assessment was completed.
Related news categories: auto-assembler business economic-indicators psx stock-exchanges
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Monday, April 15 2024

Govt asked to allow import of used cars, SUVs
Used car dealers have urged the government to allow the commercial imports of cars up to 10 years old and SUVs up to 20 years, saying this would help the government earn handsome revenues and enable consumers to buy vehicles at affordable prices. Recommending different proposals for used vehicle imports, All Pakistan Car Dealers and Importers Association (APCDIA) Chairman Mian Shoaib Ahmed said another way is to allow a restrictive $800 million imports mix per annum of different types of used vehicles through banking channels by reforming import policies and tariff structure. He said this step would help eliminate the outflow of foreign exchange through the kerb market and promote a documented economy by channelising all transactions through the banking system.
Related news categories: auto-assembler business economic-indicators

New players eye Pakistan’s growing hybrid, electric vehicles market
As the auto market continues to grow in Pakistan, new players are setting their sights on introducing hybrid as well as electric vehicles (EVs) in the country, and one of the largest automakers has announced its entry into Pakistan. The BYD Group of China has recently announced its entry into the passenger vehicle market in Pakistan in collaboration with Mega Conglomerate Pvt Ltd, the parent company of Hub Power and Haleeb Foods. During a signing ceremony recently held in China, Aly Khan, executive director of Mega, highlighted plans to promote EV adoption in Pakistan.” He stated that three BYD showrooms would be established in Karachi, Lahore, and Islamabad in 2024. The move is expected to accelerate the electrification of Pakistan’s automotive industry, which has largely been based on petroleum fuel.
Related news categories: auto-assembler business economic-indicators