Overview
The dwindling economic situation has made serious hurdles for the automakers which caused a huge decrease in cars sale in Pakistan. The low inventory is caused by low production and low sale. The rising in inflation affects car prices which causes low sales. As well the restriction on imports has caused low inventory.
The downturn of the economy disturbs the automotive business. The vehicle’s production is badly decreased. Automakers face several plant shutdowns due to low inventory. The unstable value of the Rupee has made difficulties in the payment of imported parts.
PAMA Report
As per the report of the Pakistan Automotive Manufacturing Association (PAMA), only 88,620 units were sold in the year July-April 2023. Compared to the last year same period total of 191,238 units were sold. This dramatic decrease in sales makes a sale difference of 53.7% from last year.
The ongoing economic situation is a big part of a huge plunge in car sales and production. Everyone knows the current dollar rate against PKR and the government restrictions on the import of automotive parts.
Car companies were forced to increase the price due to the rupee devaluation and it made it nearly impossible for customers to make car purchase. The price of cars is not stable and the last 6 months are considered as worst. Car prices increased twice a month. Here is the PAMA report on our automotive industry sales.
| Vehicles | July-Apr ’21-22 | July-Apr ’22-23 | Difference |
| Cars | 191,238 | 88,620 | -53.70% |
| Buses | 512 | 573 | 11.90% |
| Trucks | 4,911 | 2,961 | -39.70% |
It is clear evidence that cars sale in Pakistan drastically declined by 50%. The challenging economic story is a clear part of the falling automotive industry. Rising inflation, difficulty in purchasing raw materials, high regulatory duties, and rupee depreciation is part of the falling down car industry.
Apart from this, customer purchasing confidence is also low due to the risk of inflation. The spending power becomes low because the economic factors affect the income and change customers purchasing power.
The report has shown a decline in car and trucks sale. Meanwhile the busses sale rise compared to the previous year. The government has increased the purchase of buses to make public transport easy for citizens. But they should focus to make improvements for the auto sector to improve their sales measurements.
Conclusion
Pakistan’s automotive industry highlighted the ongoing loss in sales for a couple of months. The decline in sales falls them in the worst situation. However, during this critical part of life, they continuously try to improve sales. The most disturbing thing for them is not getting approval for LCs to continue operations and fulfill the orders accordingly. This causes them to red
