Amidst a gloomy outlook for the car industry in Pakistan due to hyperinflation and economic challenges, Honda has managed to set a new sales record in May 2023. According to the latest data from the Pakistan Automotive Manufacturers Association (PAMA), carmakers witnessed a significant year-on-year decrease of 77%. However, Honda Atlas Cars Limited (HACL) reported a remarkable month-on-month increase of 19%, selling 87 cars.
The overall car sales figures for May 2023 paint a mixed picture. Toyota Indus Motor Company (IMC) recorded a modest increase in sales with 1,718 cars sold, showing a 12% month-on-month growth. Pak Suzuki Motor Company (PSMC) experienced a substantial surge in monthly sales, selling 2,958 cars, which translates to a remarkable 101% increase. On the other hand, Hyundai Nishat Motors Private Limited (HNMPL) witnessed a 31% month-on-month decline, selling 503 cars.
While individual sales for certain popular models experienced fluctuations, the industry as a whole faced challenges due to local currency instability and rising raw material costs. These factors have forced automakers to raise prices, making it difficult for them to sustain operations due to restrictions on CKD kit imports.
Although the government has refrained from increasing taxes on new cars and CKD imports, the need for further incentives means that the situation is unlikely to improve. The future of the automobile industry in Pakistan appears uncertain and challenging, casting a shadow over its prospects.
Despite the prevailing difficulties, Honda’s exceptional sales performance in May demonstrates its resilience in the face of adversity and provides a glimmer of hope for the industry’s recovery.
