Car sales crash amid escalating prices

Auto sales, including those reported by companies that aren’t members of the Pakistan Automotive Manufac­turers Association, declined in September by seven per cent on a month-on-month basis to about 13,000 units. According to data compiled by Topline Securities, auto sales dropped 51pc on an annual basis amid escalating prices, expensive auto financing and low purchasing power of consumers. The latest numbers take the first-quarter sales to 34,472 units, down 50pc from a year ago. Speaking to Dawn, Arif Habib Ltd Head of Research Tahir Abbas said the key reason for the sharp decline in car sales is the restrictions imposed by the State Bank of Pakistan on the imports of completely knocked-down (CKD) kits, which are loose parts necessary to assemble a vehicle locally. The move by the central bank is meant to control the outflow of dollars from the economy in view of the continuous drawdown on locally available foreign exchange.