With sales of passenger cars, light commercial vehicles, and 4x4s and SUVs declining by more than half compared to a year earlier, the local auto industry has failed to shift gears in July 2023, the opening month of the fiscal year.
Compared to the 11,925 units sold in July 2022, total sales in July of this year decreased by 57% to 5,092 units, according to data released by the Pakistan Automotive Manufacturers Association (PAMA). Moreover, sales were down 16% on a month-over-month basis as 6,034 units were sold in June.
The decline follows the gloomy fiscal year 2022–2023 in which the auto sector’s sales fell by 55%. The numbers for the current calendar year are more worrisome because sales decreased by less than one-third from January to July (7 months), falling to an appalling 47,855 units from 155,216 during the same period of last year.
In July 2023, Pak Suzuki sold 2,444 units, a decrease of 19% from June and 63% from July of the previous year. From January through July, sales fell by about a quarter, from 84,255 to just 19,436 units.
Sales at Indus Motor Company (Toyota) fell by 42% in July compared to the same month of last year. When compared to sales in June, the decline was 26%. The company’s sales dropped by 64% to 14,165 units from January to July.
Honda sales fell 81% to 494 units in July compared to the same month last year. The company did, however, succeed in increasing sales by 61% when compared to the 307 units sold in June. In the period from January to July, Honda sales decreased by 72% to 6,270 units.
Lastly, Hyundai sales increased by 2% in July, to 569 units, compared to June. Furthermore, this total was 183% higher than the 201 units sold in July of last year. However, the company’s sales decreased by 34% to 5,602 units from January to July period.
The massive decline in sales is attributed to escalating prices, expensive auto financing, and the low purchasing power of consumers. Non-PAMA members such as Kia, Changan, Haval, Chery, and Proton too, have witnessed a similar decline in sales.
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