The constantly depreciating Pakistani currency is also affecting the auto industry of Pakistan as the used car sales in Pakistan are observing a huge decline.
Used car sales in Pakistan are dropped by 60% as customers’ ability to purchase local and imported cars is decreased. The increasing USD to PKR or Dollar rate in Pakistan along with the high petroleum prices affected the sales of cars.
In Karachi, there were more than 1,200 showrooms in the city where used cars were sold and purchased. The used car business has been on the decline for a while, but the last two months have seen a crisis-like situation.
In Lahore alone, around 250 showrooms have shut down while market players say that if the trend persists, another 400 could close within a few months. The city had around 1,200 showrooms operating at the start of the year.
The prices of even the cheapest used 660 cc cars have now gone well past the Rs 1 million mark. The prices of 660cc cars, which a few months back were Rs 900,000 to Rs 1.2 million, are now between Rs 1.2 million and Rs1.7 million. The prices of locally manufactured used cars have also increased.
Used 1,000 cc cars are selling for Rs 100,000 to Rs 150,000 more than the average a few months back, while 1,300 cc cars are selling for Rs 200,000 more, 1,600 cc cars are selling for as much as Rs 250,000 more, while the prices of 1,800 cc used cars have increased by as much as Rs 400,000.
During the past few months, the price of 1,000 cc imported Japanese cars has gone up from the Rs 1.3 to Rs 1.4 million range to the Rs 1.8 million to Rs 2 million range.