Car sales plummet by over 50% in contrast to 2022

Amid ongoing economic uncertainty, the automotive industry in Pakistan continues to face a substantial decline in car sales.

According to the latest data released by the Pakistan Automotive Manufacturers Association (PAMA), the sales figures for July 2023 highlight the severity of the situation. The collective sales of cars by association members amounted to a mere 5,092 vehicles during the month. This marks a significant 16% decrease in sales compared to the previous month and an even more staggering 57% drop compared to the same period last year.

Breaking down the numbers further, the individual performances of prominent car manufacturers paint a concerning picture. The Toyota Indus Motor Company (IMC) reported the sale of 1,368 cars, reflecting a notable 26% decrease in sales when compared to the previous month. Meanwhile, Honda Atlas Cars Limited (HACL) managed to sell just 494 cars, showing a surprising 61% increase in sales compared to the previous month. Pak Suzuki Motor Company (PSMC), on the other hand, witnessed a 19% decline in monthly sales, with only 2,444 cars sold.

Among the manufacturers, Hyundai Nishat Motors Private Limited (HNMPL) managed to buck the trend slightly, with the sale of 569 cars in the last month. This represents a modest 2% increase in sales when compared to the previous month. The Hyundai Tucson model continued to lead the company’s sales charts.

These sales figures underscore the continuing challenges faced by the automotive sector in Pakistan as economic uncertainties persist. The industry’s performance remains closely watched by analysts and stakeholders as it navigates through these testing times.

The sales of some popular cars are as follows:

Passenger Vehicle Sales

Passenger Vehicles        Sales in June 2023           Sales in July 2023             Month-on-Month % Difference

PSMC

Cultus                                                   264                                         177                                         -33%

Alto                                                       1,913                                     1,440                                     -26%

Wagon R                                              165                                         245                                         48%

Bolan                                                     262                                         146                                         -44%

Swift                                                      278                                         249                                         -10%

Toyota IMC

Corolla and Yaris                               984                                         1,067                                     8%

Fortuner and Hilux                          862                                         301                                         -65%

Honda Atlas

Civic and City                                      227                                         208                                         -8%

HR-V & BR-V                                      80                                           286                                         258%

Hyundai Nishat

Tucson                                                  313                                         328                                         5%

Elantra                                                  88                                           80                                           -9%

Sonata                                                  77                                           90                                           17%

Although sales have risen slightly, the overall trajectory of the local car industry is still bleak. Car companies are still observing production shutdowns due to inventory shortages, while the rising prices, as well as taxes, have dampened the demand.

Experts suggest that the tough times are not over yet, as more production hiccups and price hikes are inbound.