Automobile sales increased by 49% month on month (MoM) in August 2023, reaching 7,579 units. Vehicle sales, on the other hand, fell 36% year on year (YoY).
According to figures issued by the Pakistan Automobile Manufacturers Association (PAMA), car sales in the first two months (July-August) of the current fiscal year fell 47% from the same period the previous year to 12,671 units.
In his research, Arif Habib restricted auto analyst Muhammad Abrar Polani blamed the YoY fall in vehicle sales to rising car prices, high auto finance costs, and consumers’ restricted purchasing power.
“Car sales have increased MoM,” Polani stated. However, the YoY slowdown is due to high auto financing costs. Furthermore, automakers have dramatically raised prices, which has kept buyers at bay.”
He did, however, remind out that the significant increase in sales was due to the relaxation of import restrictions in July and August 2023. As a result, “automobile sales have reached their highest point since March 2023.”
Furthermore, in reaction to inflationary pressures, buyers changed their preferences towards small automobiles with engine capacities less than 1,000cc, resulting in an 85% MoM increase in sales of vehicles in that category, he added.
According to company figures, Indus Motor sold 1,548 units in August 2023, a 13% increase over the previous month.
Pak Suzuki Motor Company contributed the most to the 75% increase in month-on-month sales. In August 2023, it sold 4,268 copies. In total, the company sold 2,769 Alto units, a 92% increase over July sales of 1,440 units.
Honda Atlas Cars saw a 36% increase in sales year on year, selling 674 units.
Mashood Khan, an auto-sector specialist, told The Express Tribune that the government, industry groups, and other stakeholders must work together to develop effective laws and plans for the car sector’s rapid recovery.
“There is a need to introduce targeted stimulus packages for the auto industry in order to provide financial relief, promote local production, and encourage consumer spending.”