The last year or so has seen a consistent, severe decline in the sales of new vehicles assembled locally. FY23 (July 2022 – June 2023) already witnessed up to 55% decline in sales, however, the picture has become even more gloomy since the beginning of this year.
According to the data compiled by Auto Journal, sales of key players in the market have witnessed an alarming decline in sales numbers during the first 6 months of the ongoing calendar year. Pak Suzuki, the largest assembler in Pakistan is the one to receive the greatest dent with a 78% decline in sales. Suzuki saw an impressive 77,576 units sold in the first 6 months of the calendar year 2022, while it managed to find only 16,987 buyers so far this year.
Honda Atlas has the most dismal sales data to show, with only 5,776 units sold in 6M-CY23 compared to 19,904 units sold in the same period of the previous year rendering a deplorable 71% decline in sales. Indus Motor Company suffered from a 65% decline in sales with 12,798 units of Toyota cars sold in the first 6 months of this year compared to 36,525 units sold during the corresponding period of the previous year.
Kia–Lucky suffered from a 63% decline having sold just 3,909 units during the discussed period compared to 10,522 units sold in the first half of the previous year. Hyundai-Nishat remains the least affected of the lot selling 5,033 units so far this year compared to 8,059 units in the same period a year earlier, witnessing a 38% decline in sales.
But while sales numbers are nosediving, the financial statements of these companies are soaring with profits. As revealed recently by Business Recorder, despite sales being cut in half, the revenue per unit sold for Suzuki, Toyota, and Honda, have increased by 76%, 79%, and 96%, respectively. All thanks to massive price hikes by local assemblers with at least 5 revisions made since the beginning of this year. This has significantly aided them in reporting profits, or at the very least a decline in profits rather than losses.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com