It’s been years, and the local car industry is still in peril. There has been much moaning and groaning over Pakistan’s car industry’s ongoing demise, but nothing has been done to steer it through its worst period. After an uptick for a month or two, car sales (MoM) have hit the rock bottom again.
Decade-old and established market players like Toyota Indus Motors (IMC) and Honda Atlas are also facing a downtrend in sales. As per the Pakistan Automotive Manufacturers Association (PAMA) monthly report, Toyota Pakistan sales declined by 26%, selling 2,036 units last month compared to 2,762 vehicles in January 2024. The carmaker sold 1,759 units of Corolla and Yaris and 277 units of Fortuner and Hilux.
IMC’s Japanese peer, Honda Atlas, also faced the same fate. The company’s sales observed a notable downtrend of 13%, reaching 1,517 units last month compared to 1,339 units in January 2024. Honda Pakistan sold Honda Atlas sold 1,375 units of City and Civic and 142 units of BR-V.
Surprisingly, Pakistan Suzuki Motors Company (PSMC) has different a number game to present. The company sales increased by 7%, clocking at 4,885 vehicles against 4,550 cars in January 2024.
Coming to the factors behind all this whammy, a series of price hikes, steep auto financing costs, and diminished purchasing power have collectively deterred customers from making new car purchases.
Car Sales Dropped by 8%
After a brief uptick for a month or two, there has been another downturn in car sales. According to the latest report from the Pakistan Automotive Manufacturers Association (PAMA), there was a significant 8% decrease in month-on-month (MoM) car sales, with 9,709 units sold in February 2024 compared to 10,536 vehicles in January 2023.
However, in a year-on-year (YoY) analysis, there’s been a stark increase of 57%. Car manufacturers managed to sell 6,186 cars during the same period last year.
What’s your thoughts regarding the ongoing sales trends? Is there any good hope in coming months? Tell us in the comment section.
