Pakistan Auto sales are down by 4% YoY in Jan 2019, as against 1% YoY increase in Dec 2018.
However, sales are up 16% MoM primarily due to seasonal factors.
Furthermore, anticipated price hike due to 5% devaluation in PKR during Nov and Dec 2018 may have also incentivized purchase of cars, we believe.
This brings 7MFY19 sales number to 143K units, down by 3% YoY.
Despite supportive measures by the govt in recent economic reform package (Jan-19), we continue to expect slow down in auto sales given deteriorating economy as well as multiple price hikes in the past 14 months.