Karachi, The auto sector in Pakistan is expecting a continued decline in sales for November 2023, following a decreasing trend since July 2022. The three listed Original Equipment Manufacturers (OEMs) are projected to report a significant year-over-year decline in sales due to both demand and supply side issues.
According to JS Global, sales are expected to decrease by 69% year-over-year, although a slight month-over-month improvement of 3% is anticipated, driven mainly by Honda Atlas Cars (HCAR). Despite signs of overall economic activity improvement, indicated by GDP growth and secondary market yields, the auto industry awaits actual improvements to trigger a meaningful recovery in sales. The report notes that stock prices in the auto sector have begun to reflect positive expectations, with significant returns observed in companies like Pak Suzuki Motors Company (PSMC) and HCAR, outperforming the market. However, Indus Motor Company (INDU) has underperformed in comparison to the broader market.
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