In September 2023, the automotive industry in Pakistan witnessed a significant decline in car sales, with a year-on-year decrease of 30%. This slump can attributed to the prevailing high prices and elevated interest rates, according to a report by The News, citing data from the Pakistan Automotive Manufacturers Association (PAMA).
The sales figures for September revealed that 6,410 cars sold, in contrast to the 9,213 units sold in the same month the previous year. Nevertheless, a slight 8% increase in sales in September compared to the preceding month, thanks to the lifting of import restrictions.
For the initial quarter of the fiscal year 2023/24, passenger car sales took a substantial hit, plummeting by 44% to 16,021 units, compared to the 28,571 units sold during the corresponding period in the previous year. The 1,300cc and above car segment experienced a notable decline of 38%, with sales reaching 2,939 units compared to the previous year’s 4,715 units, though it did show a 27% increase compared to August sales, which were at 2,310 units.
In terms of specific car categories, 1,000cc cars saw a decrease in sales, with only 691 units sold in September compared to 1,517 units during the same month the previous year. Vehicles below 1,000cc witnessed a 7% decrease, recording 2,780 units sold, as opposed to 2,981 units the previous year. This category also saw a month-on-month decline compared to August’s 2,935 units.
The sale of buses and trucks saw a significant drop, with 185 units sold in September 2023, in contrast to 378 units sold during the same month in the prior year. However, there a slight increase in sales compared to August when only 167 units were sold.
In contrast, the sale of jeeps and pick-up trucks decreased from 2,075 units to 1,902 units during the same period last year but experienced a month-on-month increase. Tractor sales, on the other hand, increased, with 5,445 units sold in September compared to 2,149 units the previous year.
Rickshaws and motorbikes experienced a rise in sales, with 107,084 units sold in September 2023, up from 99,581 units sold during the same period last year.
Sunny Kumar, an analyst at Topline Securities, attributed the monthly increase in car sales to the easing of import issues, particularly for completely knocked down (CKD) kits, which are crucial for car manufacturers in the assembly process. Nevertheless, he pointed out that rising car prices, expensive auto financing, and limited consumer purchasing power were the primary factors contributing to the year-on-year decline in sales.
Among the various manufacturers, Honda Atlas Car (HCAR) reported the highest monthly increase of 99%, largely due to a low base in the previous month when only 674 units sold. In contrast, Pak Suzuki (PSMC) recorded a 1% month-on-month decline, with 4,234 units sold in September 2023, primarily driven by an 8% decrease in Alto sales. Other variants such as Ravi, Bolan, and Cultus witnessed a month-on-month increase of 58%, 38%, and 9%, respectively, while Swift and Wagon-R sales remained steady month-on-month at 506 and 359 units in September 2023.
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