Car sales in Pakistan decline by more than 30%

WEB DESK: In September 2023, Pakistan’s car market showed interesting changes. Compared to the same month last year, car sales dropped significantly by 30.42 per cent, with only 6,410 cars sold.

However, when compared to the previous month, there was a positive uptick of 8.48 per cent, reaching 6,410 units, according to data from the Pakistan Automotive Manufacturers Association (PAMA).

Car production slightly increased by 0.53 per cent from August 2023 to September 2023, with 6,264 units manufactured. But, if we look at the bigger picture, there was a substantial decline of 15.33 per cent compared to September 2022.

For the first three months of the fiscal year 2024 (3MFY24), total car sales were 16,021, indicating a significant drop of 43.93 per cent compared to the same period last year.

This decline was due to reduced economic activity and high interest rates, making it difficult for people to finance cars.

Additionally, a shortage of dollars impacted the import of car parts and materials, leading to temporary closures of plants like Honda and Suzuki. Unfavourable market conditions also affected the sales of Jeeps, SUVs, and other vehicles.

Breaking down the sales categories, cars with engines ‘1300cc and above’ were the most popular, with 2,939 units sold.

Among these, Honda Cars (Civic and City) and Toyota (Corolla and Yaris) were the top performers.

In the ‘Below 1000cc’ category, the Suzuki Alto was the best seller with 2,551 units sold, followed by the Suzuki Bolan with 229 units. In the ‘1000cc’ category, 691 units were sold during the month.

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Regarding other vehicles, 153 trucks were sold in September 2023, showing a 15.04 per cent increase compared to the previous month.

However, on a yearly basis, there was a substantial decline of 52.63 per cent. On a brighter note, motorbike and three-wheeler sales increased by 7.53 per cent compared to September 2022, reaching 107,084 units.

Production in this category also increased significantly by 21.25 per cent compared to August 2023.

In the market for 2/3-wheelers, Honda dominated with an 86.30 per cent share.

They reported sales of 232,139 units and production figures at 231,758 units in the first three months of FY24, showcasing their strong presence in the industry.