In November 2023, the sale of passenger cars in Pakistan witnessed a significant year-on-year decline of 68.41%, reaching only 4,875 units, compared to 15,432 units in the same month last year, according to the latest data from the Pakistan Automotive Manufacturers Association (PAMA).
On a month-on-month basis, there was a marginal increase of 0.52% in car sales, totaling 4,875 units in November compared to 4,850 units in October 2023.
The total production of passenger cars in November 2023 saw a month-on-month rise of 10.42%, reaching 4,271 units, compared to 3,868 units in October. However, on a year-on-year basis, production plummeted by 72.46% compared to November 2022’s production of 15,506 units.
For the first five months of the fiscal year 2023-24 (5MFY24), car sales stood at 25,746, marking a substantial year-on-year decline of 53.30%.
The auto industry in Pakistan is grappling with multiple challenges, including high inflation, currency depreciation, low demand, and political uncertainty. Recent disruptions in the supply chain for critical parts and materials have exacerbated the sector’s difficulties.
Despite the State Bank of Pakistan (SBP) easing import restrictions, the auto sector faces challenges due to ongoing prioritization of sectors like medicine over automobiles. Restrictions on essential parts persist, significantly impacting the production capabilities of auto assemblers.
Dollar shortages have also hampered imports of car parts and raw materials, leading to temporary shutdowns of plants, such as those of Honda and Suzuki.
PAMA’s data revealed that the highest number of sales occurred in the ‘Below 1000cc’ category, with 2,113 units sold. Suzuki Alto led this category with 1,944 units, followed by Suzuki Bolan with 169 units.
The ‘1300cc and Above’ category witnessed the second-highest sales at 2,033 units, with Honda Cars (Civic & City) leading at 912 units, followed by Toyota (Corolla & Yaris) with 693 units.
In the ‘1000cc’ segment, 729 units were sold during the review month.
Truck sales in November totaled 128 units, reflecting an 18.47% month-on-month decrease and a 56.76% year-on-year decrease.
Motorbike and three-wheeler sales declined by 20.36% year-on-year in November 2023, totaling 88,493 units compared to 111,111 in November 2022. Production also fell by 13.22% month-on-month, with 101,976 units produced in October 2023.
The cumulative production and sales of motor vehicles in 5MFY24 were 459,459 and 459,703, respectively, down by 12.31% and 11.98% year-on-year.
Honda dominated the production and sales of two/three-wheelers, with sales at 398,303 units and production at 398,058 units in 5MFY24.
