Pakistan's Car Sales Fall 12.7% on Seasonal Slowdown in Demand
By Farhan Sharif
Oct. 10 (Bloomberg) -- Pakistan's car sales fell 12.7 percent in September, as demand slowed during the Muslim holy month of Ramadan.
Sales fell to 12,665 cars in the third month of the fiscal year that began July 1, from 14,513 units a year earlier, the Karachi-based Pakistan Automotive Manufacturers Association said in an e-mailed statement today.
Vehicle demand in Pakistan is fueled by rising economic growth. The $146 billion economy expanded 7 percent in the year ending June 30, from 6.6 percent last year.
Sales usually fall during Ramadan because of restricted business hours,'' said Bilal Hamid, research analyst at JS Global Capital Ltd., in Karachi.
Demand is likely to pick up after the end of Ramadan.''
Car sales during the fiscal first quarter ended Sept. 30, rose 1.1 percent to 43,640 units from 43,162 units a year ago.
The government imposed a 2.5 percent withholding tax on the sale of cars from Aug 1. Car sellers are expected to pass on the tax to buyers in the form of higher prices.
To contact the reporter on this story: Farhan Sharif in Karachi, Pakistan at fsharif2@bloomberg.net .
Last Updated: October 10, 2007 07:27 EDT
Source: Bloomberg
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