Car Sales Declined for Second Month in a Row

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Sales of locally assembled passenger cars continued to witness a decline for the second month in a row as sales in May 2021 were recorded 10% lower than that of April with 12,934 units sold, according to the data released by Pakistan Automobile Manufacturers Association (PAMA).

Pak Suzuki was the least to suffer from the damage as its sales shrunk by only 3% whereas that of Toyota and Honda suffered from a 13% month-on-month decline. However on a positive note, sales as of the first 11 months of this fiscal year stands 57% higher than that of 11M-FY20 which witnessed COVID-19 lockdowns and zero sales in April 2020.

Car Sales Declined for Second Month in a Row 1

The bestselling car in below 1000cc displacement was once again Suzuki Alto however its sales reduced by 17% to 3,375 units in May 2021. The 1000cc segment was lead by Suzuki Cultus which surprisingly saw a 38% improvement in sales with 1,820 units sold. The bestseller among sedans was once again Toyota Yaris, however it too suffered from 19% reduction in sales with 2,099 units sold in the month of May. Sales of 4x4s & SUVs also suffered from 10% MoM decline whereas LCVs and pickups witnessed an 8% improvement.

Car Sales Declined for Second Month in a Row 2

There are various factors attributed towards lower sales of locally assembled vehicles. Consumers are believed to have dampened the purchasing amid speculations on proposed budget scenario as well as the outcome of upcoming auto policy which is expected to be announced soon. Furthermore, buyers’ sentiments have started tipping towards newly introduced players in the market, the sales of which are not included in PAMA charts since automakers including FAW, Kia, Changan, United and Regal etc are not yet members of PAMA and their sales data isn’t reflected in the stats released by PAMA each month.

Car Sales Declined for Second Month in a Row 3

Kia Sportage which has become the third bestselling car of the country has pulled a major chunk of buyers from Honda Civic & Toyota Corolla Altis top-end variants, whereas the downfall in sales of Toyota Yaris is most likely caused by the arrival of Changan Alsvin which competes head to head in the same segment with a lower price tag and better features on offer.

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