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Car Sales Reduced by 36% YoY in October- Cut to Half in 4M-FY23

Sales of new local assembled passenger cars in Pakistan declined by 36% YoY in October 2022 at 11,129 units down from 17,413 units sold in October 2021.

During the first 4 months of this fiscal year, only 39,700 units were sold which is a deplorable 47% low compared to 74,952 units sold during the corresponding period of previous fiscal year. The massive slowdown is attributed towards high car prices, slowdown in economic activities, shortage of vehicle production due to curbs on the import of CKD parts, reduce purchasing power and tightened auto financing conditions.

Related: Import of Automobile Parts Nosedived in Q3, 2022

However on a MoM basis, sales in October 2022 were recorded slightly higher at 11,129 units from 9,213 units in September 2022. The recovery in production & sales in October, suggests that things are slightly improving as assemblers have been able to hand over vehicles after the release of auto parts from the port following the State Bank’s decision to enhance the quota for imports.

According to data released by Pakistan Automotive Manufacturers Association (PAMA), sales of 1300 cc and above cars were recorded at 4,771 units, down 45% compared with the same period of last year’s sales which was 8,619 units. Sales of 1,000 cc cars recorded at 1,897 units, against 2,631 units in the same month last year. Below 1,000 cc vehicles recorded a sale of 4,461 units compared to 6,163 units last year.

Related: Some Car Assemblers May Exit Pakistan- Says IMC

Sales of Honda Civic & City (combined) stood lower at 6,416 units in 4MFY23 as against 10,444 units in the same period of previous fiscal year while Toyota Corolla & Yaris (combined) sales fell substantially to 8,253 units from 19,214 units. Suzuki Cultus and WagonR sales came down to 2,952 and 2,181 units from 11,454 and 6,779 units respectively. Suzuki Bolan and Alto sales remained flat at 1,469 and 13,464 versus 4,012 and 20,773 units in 4MFY22.

According to analysts, the LC (Letter of Credit) limit has been increased to $100,000 from $50,000, which will enhance working days at the car assemblers plants. However, new investment can only be attracted once there is political stability in the country. Sales are expected to remain subdued till the first quarter of next year.

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