Car sales plunge 43pc

The entire auto sector, barring the bus segment, turned in a depressed performance as the sales of cars plunged by 43 per cent followed by 42pc dip in trucks, 19pc in jeeps and pickups, 52.6pc in tractors and 32.5pc in two- and three-wheelers during the first seven months of the current fiscal year. Contrary to past years, car sales and production in January plunged to 5,723 and 6,021 units from 13,758 and 13,780 in December 2022. Usually, the demand grows sharply in the first month of the new calendar as customers prefer to buy the latest models. During the first seven months of FY23, car production and sales registered a steep decline of 38.6pc and 43pc to 77,101 and 74,933 units from 125,507 and 131,759 units in the same period last year. Rising prices of vehicles, high markup rates, curbs on financing, plant shutdown amid a shortage of parts and delays in delivery of vehicles contributed to the huge fall in car sales. As per Arif Habib Ltd (AHL), the total auto sales (cars, light commercial vehicles, vans and jeeps) remained 31-month low to settle at 10,900 units in January showing a drop of 47pc compared to January 2022 and 36pc to December 2022. This is also the lowest sales number after June 2020 (8,800 units). Total truck sales were 2,025 in July-Jan FY23 as compared to 3,492 units while bus sales rose to 392 from 348 units.