KARACHI: Sales of cars, sports utility vehicles (SUVs), pickups and vans stood at 8,589 units in July, reflecting a 60pc year-on-year increase and a 36pc month-on-month decline.

The decline in car sales in July can be primarily attributed to the increase in withholding tax rates introduced in the FY25 budget. This increased withholding tax rates triggered pre-buying in the last month of FY24, taking sales to an 18-month high in June.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA), Toyota Corolla, Yaris, and Corolla Cross sales soared to 1,106 units in July 2024 from 1,067 units in July 2023. Toyota Fortuner and Revo sales surged to 558 from 301 units in the above period. However, Indus Motor Company’s total sales were 44 per cent lower month-on-month in July.

Honda Civic and City sales swelled to 790 from 208 in July 2023, while Honda BRV and HRV sales plunged to 141 in July 2024 from 286 in July 2023. Honda Atlas’s total July sales were down by 15pc month-on-month.

Suzuki Swift sales grew to 502 units in July 2024 from 249 in July 2023 while Suzuki Cultus and Wagon R sales slowed to 96 and 139 units from 177 and 245 units in July 2023. Suzuki Alto, Bolan and Ravi sales increased to 2,869, 288 and 576 from 1,440, 146 and 187 units in July 2023.

Hyundai Elantra, Sonata and Tucson sales shrank to 33, 34 and 113 units in July 2024 from 80, 90 and 328 units in July 2023 while Hyundai Porter sales increased to 349 from 71 units in the above period. Sazgar Haval sales remained robust, with 824 units as compared to 122 in July 2023.

Myesha Sohail of Topline Securities attributed the year-on-year rise in car, SUV, pickups and van sales in July to the low base effect of the industry, which resulted from plant closures and a shortage of inventory.

She said Millat Tractors Ltd (MTL) saw sales of 605 units, down 63pc year-on-year and 78pc month-on-month, while Al-Ghazi Tractors Ltd (AGTL) recorded sales of 855 units, down 16pc year-on-year and 40pc month-on-month in July.

She cited a drop in tractor sales in July compared to pre-buying in June, as the government had imposed a 10pc general sales tax (GST) on tractor sales.

The sales of two- and three-wheelers fell by 5pc month-on-month but increased by 15pc on year-on-year, totalling 84,993 units in July.

Truck and bus sales were up 3pc month-on-month and 57pc year-on-year, reaching 307 units in July.

Published in Dawn, August 13th, 2024