Here is the surprising news, due to rising car prices and the lower purchasing power of consumers, car sales drop massively in September and October 2022 compared to the same period last year. The total sales of new locally assembled passenger cars in Pakistan have dropped by 47 percent from 74,952 to 39,700 between July and October 2022. According to the details, the sharp fall in auto sales is a result of high-interest interest rates, the slowdown in economic activity, reduced vehicle production due to restrictions on the import of CKD parts, and tighter auto financing conditions.
Month-Wise Car Sales Drop:
As per data released by Pakistan Automotive Manufacturers Association (PAMA), on a MOM basis, only 39,700 units has sold during the first 4 months of the current fiscal year, which is 47 percent less than the 74,952 units sold during the same period of the previous fiscal year. However, sales in September 2022 have recorded at 9,213, while in October 2022 11,129 units have sold which is slightly higher than from the previous month, but down from 17,413 in October 2021.
The recovery in sales and production in October shows that things are improving a little bit. This is due to the fact that since the State Bank of Pakistan (SBP) increased the import quota, auto assemblers have been able to deliver vehicles. As a result, vehicle manufacturers were able to export their parts from the port.
Brand-Wise Car Sales Drop:
According to the PAMA report, the sales of cars with engines 1300 cc or larger have reported at 4,771 units, a 45% decrease from the 8,619 units sold during the same period last year. 1,897 units of 1,000 cc cars have sold in comparison to 2,631 units in the same month last year. 4,461 units of vehicles of less than 1,000 cc were sold, down from 6,163 units the previous year.
Meanwhile, Honda Civic and City sales decreased from 10,444 in July-October 2021 to 4,416 in July-October 2022. while Toyota Corolla and Yaris sales also plunged dramatically, from 19,214 to 8,253. Sales of the Suzuki Cultus and Wagon R decreased from 11,454 and 6,779 units, respectively, to 2,952 and 2,181 units. Sales of the Suzuki Bolan and Alto dropped from 4,012 and 20,773 in the same period last year to 1,469 and 13,464. Furthermore, Sales of two and three-wheelers decreased from 629,212 units in the previous financial year to 412,111 units in the first four months of the current fiscal year.
