Pakistan’s domestic auto industry is going through the toughest of times seen in recent history. Though sales took a dip in the pandemic year 2020, the industry recovered to achieving decent numbers in FY22. However, from there on, there is a meteor-like nosedive with no improvement in sight.
Compared to FY22, sales of locally assembled cars decreased by 55% in FY23, but the current situation in FY24 is nothing less than a disaster, with sales dropping flat and declining by a further 45%. The way things are going, it’s highly likely that the combined sales of all PAMA-member companies won’t even reach the 100,000 units sales mark in FY24.
If we talk about the numbers from the first 8 months of this fiscal year, the 1300cc & above segment has suffered a 45% decline in sales from 36,999 units in FY23 to just 20,373 units in FY24. The 1000cc segment crashed from 10,291 units in 8MFY23 to 4,786 units in 8MFY24 for a 54% decline in sales. The below 1000cc segment suffered a relatively less appalling 32% decline, all thanks to the 660cc Alto, the segment went down from 31,285 units in 8MFY23 to 21,258 units in 8MFY24.
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Comparing the sales figures of models from the prime period (in recent history) of FY22, the combined number of Civic & City stood at 35,197 units in FY22, then shrank to just 12,823 in FY23, and now have managed to reach barely 6,520 units in 8MFY24. The combined number of Corolla & Yaris was 56,528 in FY22, which reduced to just 18,838 units in FY23, and has so far reached just 9,181 units in 8MFY24.
Likewise, the sales of Suzuki Cultus stood at 23,169 units in FY22, which went down to just 6,956 units in FY23, and now has totaled just 2,501 units in 8MFY24. Wagon R sales were recorded at 23,131 units in FY22, then only 5,434 units were sold in the subsequent FY23, and now the number is dangling around 2,285 units in 8MFY24. And lastly, the bestselling Alto also suffered a huge decline in sales with 71,198 units sold in FY22, followed by just 35,379 units in FY23, whereas sales so far in 8MFY24 are just 19,761 units.
The total number of passenger cars including all three segments (below 1000cc, 1000cc, & 1300cc & above) stood at 78,575 units in 8MFY23 but now stands at 46,417 units which is 41% less than the already dented numbers from FY23. The total numbers of 4x4s & SUVs were recorded at 22,851 units in 8MFY23 and are now standing at just 12,494 units in 8MFY24 rendering a 45% decline.
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Sales already reached 20 years old levels, but considering the production capacity back then, it was not at all a bad performance. But now with production capacity three times as much as it was two decades ago, sales even less than that puts a big question mark on the state of affairs and the future of the local auto industry. A massive overhaul is needed in the thinking, planning, and execution by the policymakers & industry stakeholders alike rather than just “waiting” for things to improve, which doesn’t seem to be happening as far as the optics are concerned.
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
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