Car sales drop 8% amid economic strain

KARACHI: Car sales dropped to 9,709 units, marking an 8% decline on a month-on-month basis due to factors such as rising car prices, expensive auto financing, and consumers’ low purchasing power, according to data reported by the Pakistan Automotive Manufacturers Association (PAMA), compiled and shared by Topline Securities on Tuesday. Moreover, there was a significant 57% year-on-year increase in auto sales in February 2024. Additionally, car sales for non-PAMA members totalled 10,900 units, reflecting a 7% decrease on a month-on-month basis, while sales rose by 52% year-on-year during February 2024. Analysts and automakers stated that it would take ample time to bolster sales as the country’s economic conditions worsen, and buying new cars is perceived as a luxury. They noted that people are primarily focusing on essential items. They anticipated lacklustre auto sales during the first and second weeks of Ramazan but expected some momentum in the last week before Eidul Fitr.