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KARACHI: Tractor makers may be excited about the 87 per cent surge in sales, but other segments of the auto sector faced a sales slump ranging between 10pc and 47pc during 4MFY24.
The rise in tractor sales to 17,296 units (Fiat and Massey Ferguson) also signals some brisk agricultural activities during July-Oct FY24, from 9,258 units in the same period last fiscal.
In the car segment, the month-on-month (MoM) sales streak during Aug and Sept 2023 finally broke in Oct 2023, with sales dropping to 4,850 units from 5,909 in Aug and 6,410 units in Sept 2023. Sales in July 2023 were 3,702 units.
Total car sales clocked in at 20,871 in 4MFY24 from 39,700 in the same period last fiscal, down by 47pc, owing to frequent plant shutdowns on issues of opening LCs, depressed demand, high auto financing due to unbearable interest rate, soaring prices of vehicles and rising petroleum prices.
Barring Pak Suzuki Motor Company Limited, some major assemblers announced price cuts, but it seems that it could not lure buyers as expected.
Tractor sales surge 87pc, car segment plunges 47pc in 4MFY24
A whooping 57pc drop was recorded in 1,300cc and above segment (Honda City and Civic, Toyota Corolla and Yaris, Suzuki Swift, Hyundai Elantra and Sonata) to 8,523 units in the first four months of FY24 from 19,634 units in 4MFY23.
The 1,000cc segments (Suzuki Cultus and WagonR) declined by 55pc to 2,302 units from 5,133 units.
Suzuki Bolan and Alto 660cc, falling in the below 1,000cc segment, suffered a 33pc sales fall to 10,046 units from 14,933.
Sales of LCVs, vans and jeeps plunged by 31pc to 6,117 from 8,873 units in which Toyota Fortuner/Revo sales shrank by 62pc to 1,526 from 3,989.
Like past trends, Hyundai Tucson and Honda BR-V/HR-V did not get any alarming sales hit, dipping by 19pc and 15pc to 1,349 and 1,223 units, respectively, from 1,665 and 1,201 units.
Sazgar sold 964 Haval vehicles from 203 units, while Suzuki Ravi showed a 25pc drop to 832 units versus 1,110 units.
Hyundai Porter sales grew by 519 units from 420 units in July-Oct FY23, up by 24pc, while sales of Hyundai Santa Fe (launched in Sept) stood at 175 units in Oct 2023.
Total truck and bus sales stood at 608 and 122 units during July-Oct FY24 as compared to 1,109 and 210 units from the same period last fiscal, reflecting lack of interest of transporters in purchasing heavy vehicles amid slowdown in economy and trade.
Total two/three wheelers sales were 370,966 units from 412,825. Honda sold 7pc less bikes to 322,260 units as against 345,381 units, while a 63pc fall was recorded in Suzuki sales to 4,995 units from 13,532 units. Yamaha sales fell to 3,237 units from 4,856. Road Prince and United Auto Motorcycle sold 5,851 and 28,633 units compared to 12,194 and 30,337 units.
Not a single bike assembler had cut prices due to rising rupee against the dollar from Sept 5 to Oct 16, 2023. One dollar was trading at Rs307.10 on Sept 5 as against Rs276.50 on Oct 16, 2023 in the interbank market. Currently, one dollar is available at Rs287.55.
Sazgar, Road Prince and United Auto three wheelers sales stood at 3,880, 211 and 324 units versus 2,907, 783 and 521 units.
Commenting on auto sales, Faez Ahmed Sheikh of Topline Securities stated that the month-on-month drop in car sales resulted from a disruption in the supply chain, followed by lower demand. Escalating car prices, expensive auto financing, and the low purchasing power of consumers have impacted year-to-year sales, he added.
He also mentioned that the rise in tractor sales during July-Oct FY24 was attributed to the low base of the previous year, which was affected by floods.