By Ayesha Mudassar ISLAMABAD, April 18 (INP-WealthPK): Car sales of almost all models have remained high in recent months despite price increase and tax rate hikes, according to the data released by Pakistan Automotive Manufacturers Association (PAMA), reports WealthPK. Total passenger car sales increased to 172,612 units in three quarters of the current fiscal year (3QFY22) compared to 112,244 units in 3QFY21, registering a growth of 54%. Sales increased in March by 25% compared to February, while the industry showed a growth of 30% when compared to sales in March 2021. In March, the industry sold 27,131 units up from 21,664 in February. The industry sold 20,813 units in March last year. Honda, Toyota, and Suzuki have been operating in Pakistan for decades. Honda sold 3,651 units in March, 33% more than February and 16 % more than March last year. The company's nine-month sales in the fiscal year 2022 (FY22) grew by 38% to 30,010 units compared to 21,698 units during the corresponding period last year. Pak Suzuki sold 15,011 cars in March, showing an increase of 18% from the previous month and 48% compared to March 2021 sales. Toyota cars posted a growth of 53% in sales month on month, selling 7,068 units compared to 4,630 units in February. The year-on-year sales growth was 6%. Sales of trucks, buses, jeeps, pick-ups, and tractors also showed an increasing trend in 3QFY22 compared with the corresponding period of the last fiscal year, according to PAMA. Similarly, production of cars increased by 57%, trucks by 77%, buses by 66%, LCVS, vans, and jeeps by 43%, and tractors by 13%. Two and three-wheeler sales increased 9% month-on-month to 148,741 units. However, the segment’s sales declined 13% year-on-year, as sales stood at 170,350 units in March 2021.

Production and sales data of motorcycles & three-wheelers
	Cumulative		Month Comparison
	3QFY22	3QFY21	March 2022	February 2022	March 2021
Production	1,386,719	1,439,535	157,387	135,652	173,091
Sales	1,377,281	1,438,194	148,741	136,527	170,350

PAMA Muhammad Ayub, who runs an auto parts manufacturing unit, told WealthPk that local automakers have raised car prices. Kia Lucky Motors led the way, followed by Toyota Pakistan, Hyundai Nishat, Suzuki, and then Honda Atlas. Auto sales might come down in the next fiscal year, as prices have gone up dramatically due to higher freight charges, expensive raw materials, and adverse rupee-dollar parity, he added. Automobile sector is one of Pakistan's fastest-growing industries, employing over 3.5 million people and accounting for 3% of the country's GDP. It contributes around Rs50 billion ($310 million) to the national exchequer annually. Despite being an old industry, the sector has yet to achieve the targeted level of localization. Assemblers import two-thirds of auto parts for vehicles assembled in Pakistan. The entry of new manufacturers and government support has also contributed to a rise in car sales. Efforts should be made to enhance foreign investment in this sector, which can help create local employment opportunities and foreign exchange earnings, and save on imports through import substitution.