Car Sales Declined 53% in FY2019-20

Sales of locally assembled passenger cars witnessed a 53% decline in sales during FY2019-20 due to slowdown in economic activities, higher interest rates, constantly rising car prices & towards the end due to coronavirus pandemic which virtually put car sales at a halt. According to data released by Pakistan Automobile Assemblers Association (PAMA), the overall sales of cars plunged to 110,583 units in FY2019-20 as compared to 235,229 units sold in the previous fiscal year.

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Honda Atlas suffered the worst decline the sales of which fell by 63% to 16,390 units compared with 44,234 units in the preceding fiscal year. Indus Motors witnessed a 53% decline in sales, from 60,993 units in FY18-19 versus just 28,378 units sold in FY19-20. Pak Suzuki registered a 49% decline with 65,815 units sold during the period under review, as opposed to 130,002 units in the preceding fiscal year.

On a year-on-year basis, domestic car sales witnessed a decline of 52% to 8,446 units in June 2020, as compared to 17,468 units sold in June 2019. However, on a month-on-month basis, car sales increased by 77% in June 2020 when compared with May 2020, as car dealerships began resuming their activities after COVID-19 lockdowns were eased.

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In June 2020, sales of 1300cc and above car dropped by 42.6% to 4,056 units only as compared with 7,074 units sold during the same month in the previous year. During FY19-20, sales of these cars dropped by 61% to 39,386 cars from 100,959 cars last year. Sales of Toyota Corolla decreased by 80% to 855 units from 4,406 units in June 2019, while sales of Honda Civic and City were also down by 12.67% to 1,839 cars from 2,106 units, compared to the same period last year. Suzuki Swift saw a 64% decline to 202 cars only from 562 cars sold during the same period last year. Indus Motor’s newly launched Toyota Yaris saw sales of 1,160 units in June.

1000cc cars including Suzuki Cultus and Suzuki WagonR witnessed a 64% drop in sales in June 2020 to 1,306 units against 3,614 units sold in the same month last year. During the year only 19,291 units were sold when compared to 55,377 units in FY18-19 registering a 65% decline.

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Under 800cc cars, sales dropped by 52% to 1,963 units in June against 4,079 units sold during the corresponding period last year. A total of 37,778 units were sold during the year compared to 51,294 units sold in FY18-19 rendering a 26% drop in sales.

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