Pakistan’s auto sector is in crisis, with sales cut in half owing to steeply rising car prices, tightened auto financing conditions, shrinking purchasing power of the masses, and, most importantly, government restrictions on imports (including raw materials, CKD parts & components) imposed to prevent the outflow of valuable foreign reserves.
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Non-production days (NPDs) are being observed by local automakers from the beginning of the current fiscal year which has resulted in sales of every locally assembled vehicle going down by around 50%. Surprisingly, the Hyundai Tucson is the one car that is demonstrating a positive sales trajectory even during these difficult circumstances.
Hyundai-Nishat, the South Korean automaker’s local joint venture partner, sold 3,572 Tucson units as of the first 8 months of the current fiscal year, as opposed to 2,230 Tucsons sold over the same period last year, representing an impressive 60% increase in sales. The primary factor driving the increase in sales is the vehicle’s availability, as Hyundai has generally positioned itself better to combat part shortages and ensure faster deliveries.
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Although sales of other Hyundai vehicles are decreased, they are down by just a slight margin when compared to the industry average. For example, Elantra sold 1,698 units in 8M-FY23 compared to 1,929 units in 8M-FY22, witnessing a 12% decline. Sales of Porter were 848 units, down by 27% in comparison to 1,161 units sold in the first 8 months of the previous fiscal year. The Sonata however was the worst hit with 948 units sold in comparison to 1,638 units in 8M-FY22 witnessing a 42% decline.
Overall sales of Hyundai cars in the discussed period stood at 7,066 units, which is 1.6% more than the 6,958 units sold during the first 8 months of the previous fiscal year. Tucson’s significant contribution is the key reason for the increase in sales.
Like other assemblers, Hyundai-Nishat has announced 5 price revisions within the first 3 months of this calendar year. The most recent one was announced within a week after the prices were already increased in wake of the 25% GST imposed by the government. Fortunately, the company hasn’t yet experienced the hardship that other assemblers experience. We’ll have to wait and see if Hyundai’s upward sales trend continues in the aftermath of the recent price increases.
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
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