Car sales in Pakistan have decreased by over 68% year over year

 Car sales in Pakistan have decreased by over 68% year over year

Car sales in Pakistan have decreased by over 68% year over year

WEBDESK: According to the Pakistan Automotive Manufacturers Association (PAMA), there was a notable decline in the country’s passenger car market in November 2023.

Sales fell by an astounding 68.41 percent year over year, with just 4,875 units sold, a dramatic decrease from the 15,432 units recorded in the same period previous year.

There was a minor increase of 0.52% month over month, with November’s sales barely surpassing the 4,850 vehicles sold in October 2023.

A distinct pattern was observed in the total production of passenger cars, which increased by 10.42% month over month in November 2023 to 4,271 units from 3,868 units in October 2023.

Despite this monthly boost, production witnessed a severe year-on-year drop of 72.46 per cent compared to November 2022’s figure of 15,506 units.

Also Read: IMF board to likely approve Pakistan’s next tranche on Jan 11

The cumulative sales for the first five months of the fiscal year 2023–24 stood at 25,746, reflecting a substantial 53.30 per cent year-on-year decline. Highlighting the challenging conditions faced by the auto industry in Pakistan.

The sector has been grappling with a myriad of issues, including high inflation, currency depreciation, subdued demand, and political uncertainty.

The challenges have exacerbated by recent disruptions in the supply chain, affecting the procurement of critical components and materials.

Despite the State Bank of Pakistan’s (SBP) efforts to ease import restrictions. The auto sector still has relatively low priority, with sectors like medicine receiving preferential treatment.

Persistent restrictions on essential parts continue to impede the production capabilities of auto assemblers.

A shortage of dollars further exacerbates the situation, impacting the import of crucial car parts and raw materials.

Consequently, some plants, including those of Honda and Suzuki, have been compelled to temporarily shut down.

According to PAMA’s data, the ‘Below 1000cc’ category recorded the highest sales, with 2,113 units.

The ‘1300cc and Above’ category followed closely with 2,033 units, while Honda Cars (Civic & City) took the lead with 912 units, trailed by Toyota (Corolla & Yaris) with 693 units.

In the two-wheeler segment, including motorbikes and three-wheelers, sales experienced a 20.36 per cent year-on-year decline in November 2023, totaling 88,493 units, compared to 111,111 in November 2022.

The production also witnessed a 13.22 per cent month-on-month decrease, dropping to 88,493 units from 101,976 units in October 2023.

Web Desk

Related post