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Auto Industry Begins the New Fiscal Year with 50% Decline in Sales

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Local auto industry marks the beginning of new fiscal year 2019-20 with a 50% reduction in sales. The ongoing massive depreciation of Pak Rupee against the US Dollar and imposition of additional duties and taxes have pushed the prices of automobiles beyond the reach of masses.

The picture is getting worse every passing month as the industry is suffering from heavy losses despite several price revisions during the past few months. Car prices in Pakistan during the last 18 months have been revised up to 10 times with prices going up by 39% on average.

Related: Car Price Comparison: December 2017 vs July 2019

However when we compare the stats from July 2018, with that of July 2019, the stats are quite horrifying.

1300cc & above cars

The 1300cc & above segment has suffered a massive blow with sales reducing by -63%.

Car(s) July 2018 July 2019 Difference
Honda Civic & City 4609 1452 -68.4%
Suzuki Swift 484 174 -65%
Toyota Corolla 4566 1981 -56.6%
Total 9659 3607 -62.6%

1000cc cars

The segment which comprise of two Suzuki hatchbacks, took a -53% dip too. Keep in mind the Cultus and Wagon R are currently the bestselling cars in Pak Suzuki’s lineup. While Cultus suffered from -27% decline, WagonR saw an almost -70% reduction in sales.

Car July 2018 July 2019 Difference
Cultus 1661 1280 -27.27%
WagonR 2772 843 -69.5%
Total 4433 2051 -62.6%

1000cc & below cars

The segment consists of Mehran (now discontinued) and Bolan– both offered by Pak Suzuki. Alto is not included in comparison since it wasn’t available in July 2018. The segment took a mind blowing -85% reduction in sales.

Car July 2018 July 2019 Difference
Mehran 3437 394 -88.53%
Bolan 1346 332 -75.3%
Total 4783 726 -84.8%

Other vehicles include:

Car July 2018 July 2019 Difference
Toyota Fortuner 220 74 -66.3%
Honda BR-V 372 242 -34.9%
Suzuki Ravi 1195 840 -29.7%
Toyota Hilux 682 358 -47.5%

According to industry analysts, the downfall in automobile sales may render about 150,000 people jobless. Auto industry which was one of the best performing sectors in recent years is currently facing a bleak scenario ahead. This has prompted major players as well as new entrants to make major revisions in their manufacturing plans.

Related: Import Restrictions Will Benefit Pak Suzuki At Large

Auto industry had forecasted to increase its sales to 0.3 million by 2021 and half a million units by 2022; however from the looks of it, the sector is far from achieving this goal.

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