Car sales in the country fell 64% in July compared to the same month last year, as increased borrowing rates and pricing discouraged consumers.
Except for tractors, all vehicle sales fell throughout the time, including trucks, passenger cars, pick-ups, jeeps, three-wheelers, and two-wheelers.
According to data from the Pakistan Automotive Manufacturers Association (PAMA), the sale of passenger automobiles (PAMA member cars) fell 64% to 3,702 units in July 2023, compared to 10,378 units sold in the same month in 2022.
According to Sunny Kumar, an analyst at Topline Securities, the key reasons for the fall in sales were rising automobile prices, high auto finance costs, and consumers’ poor purchasing power.
During this period, sales of cars powered by 1300cc or higher were just 1,694 units, which was 62% less than the 4,464 units sold during the same period last year.
This year’s sales included 208 Honda Civic and City units, 249 Suzuki Swift units, 1,067 Toyota Corolla and Toyota Yaris units, 80 Hyundai Elantra units, and 90 Hyundai Sonata cars.
During this time, only 422 units of 1000cc cars were sold, including 177 units of Suzuki Cultus and 245 units of Suzuki WagonR.
Below 1000cc vehicles sold 1,586 units, with the Suzuki Bolan selling 146 units and the Suzuki Alto selling 1,440 units.
Buses and trucks fell to 195 units in July from 274 units the previous month. Jeep and pick-up sales fell to 1,390 units from 1,547 units sold during the same period last year.
Tractor sales, on the other hand, surged to 2,678 units from 2,254 units in July of last year.
Rickshaw and motorcycle sales fell to 73,588 units in July 2023, down from 96,421 units the previous year.
Indus Motors (INDU) had the biggest MoM decline of 26% to 1,368 units in July 2023, led by a 65% MoM decline in Fortuner and Hilux sales.
Pak Suzuki Motor Company (PSMC) showed a 19% MoM fall to 2,444 units in July 2023, led by a drop in Bolan (-44% MoM) and Alto (-25% MoM) sales.
However, Honda Atlas Car (HCAR) increased 61% MoM to 494 units in July 2023, owing primarily to the low base of the previous month.
Hyundai sales increased by 2% year on year, while Tuscon sales increased by 5% year on year to 328 units in July.
Amongst Tractors, Millat Tractors (MTL) recorded a decline of 22% MoM to 1,656 units in July 2023, while Al-Ghazi Tractors (AGTL) recorded sales of 1,022 units, up 20% MoM.
Sales of trucks and buses were up 31% MoM, and down 29% YoY to 195 units in the month under review.
Pakistan’s bike sales were down 11% MoM and 24% YoY in July 2023. Atlas Honda (ATLH) recorded sales of 62,000 units, down 17% MoM and 23% YoY. Higher bike prices and the low purchasing power of consumers are the primary reasons for the decline in sales.
