ISLAMABAD: Passenger car sales showed further robust growth of 104 percent across the country in July 2021. Auto analysts have linked this positive development with low-mark up credit availability, auto-friendly policy, and resumption of business activities in 2021.
According to the Pakistan Automotive Manufacturers Association (PAMA), passenger car sales surged to 20,669 units in July 2021 in comparison with 10,123 units sold in the same month last year.
Association was optimistic that auto sales would remain on the upside this year, as customers were set to enjoy some benefits under the new auto policy.
In the period under review, sales of trucks, buses, jeeps, tractors, and pickups increased notably, while that of three and two-wheelers dropped. During July 2021, sales of 1,300cc and above cars clocked in at 7,265 units, up 25% compared to 5,803 units sold in the same period.
These sales included 1,700 units of Honda Civic and City, 225 units of Suzuki Swift, 2,320 units of Toyota Corolla, 2,700 units of Toyota Yaris, and 157 units of Hyundai Elantra. During the month, sales of 1,000cc cars increased to 6,344 units from 1,643 in July 2020, while of those below 1,000cc shot up to 7,060 units from 2,677 last year.
Sales of buses and trucks improved to 343 units in July 2021 from 255 in July 20. Sales of jeeps surged threefold to 1,200 units from 403 sold in the same period last year.
During this period, 3,049 units of pickups were sold against 1,133 units in the same month last year, while tractors sales increased to 4,332 units from 3,613 units.
The sale of rickshaws and motorbikes declined to 133,426 units during July 2021. That compared to 149,921 units in July last year.
The auto policy incentives were aimed at increasing car sales, especially those of smaller ones, improve share of energy-efficient and environmentally-friendly electric/hybrid cars and enhance overall market size by boosting manufacturing to 300,000 units in FY2022 to 500,000 units by FY2026, analysts said.
Major measures introduced in the budget include the abolishment of 2.5% FED (Federal Excise Duty ) along with the reduction in sales tax from 17% to 12.5% for cars, with an engine capacity of up to 1000cc, offering a total relief of 7% to customers.