Disappointing Figures for Local Assemblers in October 2023

October 2023 turned out to be the worst month for local assemblers in terms of sales. It was even more depressing than the pandemic-struck 2020. The sales data released by the Pakistan Automobile Manufacturers Association portrays a dismal picture of the economic scenario with car sales hitting rock bottom witnessing just 4,850 units sold throughout the month.

Starting with the 1300cc & above segment, sales of Honda Civic & City (combined) saw only 379 units which is a 67% month-on-month (MoM) decline, while cumulative numbers during the first 4 months of this fiscal year are 65% less than the corresponding period of previous fiscal year. Sales of Suzuki Swift dipped to just 315 units, 37% less than the previous month and a 55% year-on-year (YoY) decline as per 4M-FY24 sales.

Sales of Toyota Yaris & Corolla (combined) went down by 24% MoM to just 796 units in October 2023 while suffering from a 51% YoY decline in the first 4 months of this fiscal year. Sales of Hyundai Elantra and Sonata stood at only 52 and 32 units, respectively, rendering a MoM decline of 46% and 70%, and a YoY decline of 89% and 23% as per 4M-FY24 sales.

In the 1000cc segment, Suzuki Cultus was least affected with just a 1% MoM decline in sales selling just 328 units, however, Wagon R suffered from a 45% decline with just 197 units sold in October. The duo suffered from a YoY decline of 61% and 47% respectively, in terms of 4M-FY24 sales.

In the below 1000cc segment, Suzuki Bolan saw only 143 units sold for a 37% MoM decline, whereas Alto sales increased by 2% reaching 2,602 units in October. Overall as per 4M-FY24 numbers, Bolan and Alto suffered from a 53% and 30% decline, respectively.

Overall the passenger car segment suffered from a 47% YoY decline in sales compared to the already dented numbers from the corresponding period of the previous fiscal year.

Moving on to the pickups & 4x4s/ SUVs segment, Toyota Hilux & Fortuner (combined) suffered from a 54% MoM decline with sales of only 252 units. This is also a 62% YoY decline compared to 4M-FY23 sales. Hyundai Tucson suffered from a 67% MoM decline selling only 136 units, and a YoY decline of 19% in 4M-FY24.

PAMA data shows that not a single BAIC BJ40 unit was produced since the beginning of this fiscal year, but the company sold just 1 unit in October which is 50% less than the 2 units it sold in September 2023. Overall in 4M-FY24 sales of BAIC BJ40 came down by 51% YoY. Data also reveal that not a single unit of Honda HR-V & BR-V was produced either. However, Honda managed to sell 80 units (combined) which is down by 56% MoM, and YoY sales declined by 15%.

Although Sazgar’s Haval SUVs suffered from a 16% decline in October 2023 with 252 units, its YoY numbers increased by an impressive 375% in 4M-FY24. Since the beginning of this fiscal year, Ghandhara hasn’t revealed Chery Tiggo sales numbers, and it remained absent in October as well. Moving on, with 252 units, sales of Suzuki Ravi dipped by 12% MoM and suffered from a 25% YoY decline in 4M-FY24 sales.

Isuzu D-MAX has been sitting at the extreme bottom of domestic sales charts ever since it was introduced in November 2018. Not a single unit of D-Max was sold in October, while its YoY numbers fell by 58% to just 26 units in the first 4 months of this fiscal year hardly averaging 6 units a month.

Lastly, Hyundai Porter sales came down by 14% in October 2023 with 151 units and a YoY decline of 24% in 4M-FY24 sales. October was also the first month when the new Santa Fe began its sales, and the hybrid 7-seat SUV saw 175 units sold which is impressive for a vehicle that cost nearly Rs 1.42 crore.

Overall the sales of the pickups & 4x4s/ SUVs segment suffered from a 31% YoY decline in sales. Meanwhile, truck sales declined by 45% YoY and bus sales came down by 42% YoY.

The massive drop in car sales is attributed to a disruption in the supply chain, followed by weak demand, escalating car prices, expensive auto financing, and the diminishing purchasing power of consumers have all impacted year-to-year sales of new vehicles in Pakistan. According to analysts, sales are likely to remain subdued throughout the fiscal year 2024 with a further 14% overall drop in sales anticipated.

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