Despite unforeseen economic hardships, Pakistan’s demand for automobiles remains steady. Many experts and analysts had predicted a decrease in sales, but June of 2022 saw record-breaking numbers for car companies. Even though inflation and taxes are at all-time highs, Pakistanis continue to purchase cars at a consistent rate.
The Pakistan Automotive Manufacturer’s Association has not yet released the official figures, but reliable sources have reported that PAMA members collectively sold 28,098 vehicles last month.
It adds that Toyota Indus Motor Company (IMC) sold 6,309 cars, reporting a 7 percent Month On Month (MoM) increase in sales. Honda Atlas Cars Limited (HACL) sold 3,903 cars and recorded a 34 percent MoM increase, while Pak Suzuki Motor Company (PSMC) sold 16,009 cars with a 31 percent increase in sales.
Hyundai Nishat Motors Private Limited (HNMPL) sold 1,871 units in October, recording a 9 percent increase from the previous month. A report from autojournal.pk also highlights that Kia Lucky Motor Corporation (KLMC) sold over 2,100 vehicles in October, showing a 43 percent increase in sales from the previous month.
The monthly sales of some popular cars are as follows:
|Passenger Vehicles||Units Sold in May 2022||Units Sold in June 2022||Month on Month %age Difference|
Automakers and analysts predicted a slump in sales due to price hikes, citing rising shipping costs, raw material costs, fuel costs, and local currency depreciation.
Some experts predict that sales will remain strong until Q3 2022. One reason for this is that some businesses make good profits by buying cars at current prices and selling them at a higher price after the hike is announced.
The second reason for the decline in sales is the pre-stacked orders that are awaiting invoice generation and delivery. It would be interesting to see how the situation plays out in Q4 2022 or Q1 2023, as price hikes and increased taxes begin hurting the demand..