The automotive industry continues to suffer as a result of worsening economic conditions and it is evident from the fact that car sales in Pakistan have witnessed a massive drop in January 2023 compared to the previous month.
Pakistan Automotive Manufacturers Association (PAMA) has released a report of sales figures for the month of January 2023 and things don’t look too good for some of the major players in the automotive industry.
According to the report, the car sales in Pakistan have seen a 36% drop in month-on-month sales with only 10,867 vehicles sold during January 2023. The company most affected by the current economic conditions in Pak Suzuki Motor Company (PSMC) that saw a massive fall in overall sales last month.
Pak Suzuki Motor Company (PSMC) has seen a decline of 74% in sales during January 2023 as it sold only 2,946 cars compared to the previous month of December 2022. Furthermore, the company’s best-seller, the Suzuki Alto, saw a 99% fall in sales as it sold only 44 units last month.
Read more: Suzuki Alto Witnesses Massive Sales Drop in January.
Meanwhile, Honda Atlas Car Pakistan Limited (HACPL) sold 2,704 cars during January 2023, which account for a month-on-month increase of 33% in sales, while Toyota made 3,750 sales and reported an increase of 26% in sales, especially for Hilux and Fortuner.
Hyundai Nishat Motors Private Limited (HNMPL) came out on top as it saw a increase of 81% in sales for January 2023 after selling 1,143 units, especially Sonata that witnessed 241% hike in units sold last month.
Car Sales in Pakistan
| Vehicles | Sales in December 2022 | Sales in January 2023 | Difference |
|---|---|---|---|
| Cultus | 1,057 | 543 | -49% |
| Alto | 6,898 | 44 | -99% |
| Wagon R | 872 | 671 | -23% |
| Bolan | 464 | 556 | +20% |
| Swift | 1,428 | 504 | -65% |
| Corolla and Yaris | 1,879 | 1,719 | -9% |
| Fortuner and Hilux | 944 | 1,851 | +96% |
| Civic and City | 981 | 1,620 | +65% |
| HR-V & BR-V | 1,098 | 1,084 | -1% |
| Tucson | 353 | 620 | +69% |
| Elantra | 142 | 173 | +19% |
| Sonata | 47 | 191 | +241% |
Meanwhile, the automotive companies are increasing prices for their vehicles due to depreciating Pakistani Rupee (PKR) against the US Dollar (USD). Toyota Pakistan just announced its third price hike in the last 30 days.
Read more: Toyota Car Prices in Pakistan Increased For Third Time in 30 Days.
Furthermore, the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) and Pakistan Automotive Manufacturers Association (PAMA) have warned the government of an impending demise of the automotive sector in the country if policies aren’t correct to ensure import of raw materials.
In a joint letter sent to the Governor of State Bank of Pakistan (SBP), Jameel Ahmed, the two organizations said that SBP’s restricts and lack of cooperation from banks has severely damaged the automotive industry, which will not only result in jobs but reduced revenue for the government as well.
Moreover, the letter stated that if things continued in the same manner it would result in closure of plants and loss of foreign capital in the country.
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