Struggling to Revive: The Market Failures Among Pakistan’s Recovering Car Sales

Car sales in Pakistan are gradually regaining momentum, although they remain significantly lower than the pre-2022 levels, following the traumatizing years of 2022 and 2023 when per-year sales collapsed to the 20-year-old levels, even way below the pandemic year.

However, the recent figures show encouraging signs of recovery compared to the previous year. Analyzing the sales data released by the Pakistan Automobile Manufacturers Association (PAMA), it is evident that most car models have recorded notable improvements in their sales performance. This upward trend reflects growing consumer confidence and a stabilizing market.

Related: How Can Car Sales Improve in Pakistan?

That said, not all models have benefited equally from this recovery phase. Unfortunately, some vehicles have struggled to attract buyers, failing to improve their sales even during this period of market revival. This disparity may highlight the varied challenges faced by automakers as well as the changing dynamics of consumer preferences in Pakistan’s automotive sector.

Let’s take a closer look at the market’s worst performers during the first 5 months of this fiscal year, FY24-25.

Hyundai Sonata

Hyundai Sonata, which initially gained traction as the most popular and the only locally assembled D-segment sedan in Pakistan, has experienced a significant decline in sales during the current fiscal year. In the first five months, Sonata’s sales dropped to just 229 units compared to 402 units in the same period of the previous fiscal year, witnessing a 43% decline.

Suzuki Cultus

Once regarded as the most popular 1000cc hatchback in the country, the Suzuki Cultus in recent years has seen its sales take a sharp hit, as many buyers have shifted their preference to the 660cc Suzuki Alto, which is not only more spacious but offers better fuel efficiency. Cultus sales have plummeted from 1,611 units to just 808 units in the first 5 months of this fiscal year compared to the same period in the previous fiscal year, rendering a deplorable 49% decline.

Suzuki Wagon R

The Wagon R sales have also taken a hit just like the Cultus for similar reasons. Compared to 1,420 units sold in the first five months of the previous fiscal year, Wagon R sales have so far reached only 939 units, reflecting a 34% decline.

Hyundai Tucson

The Hyundai Tucson makes a surprising appearance on this list. Long regarded as one of the stronger performers in Hyundai’s lineup, Tucson has experienced a significant decline in sales, dropping from 1,558 units to 922 units during the first five months of FY24-25 for a 41% decline.

Honda HR-V and BR-V

Honda’s HR-V has proven to be a major disappointment in the company’s efforts to compete in the rapidly booming crossover segment, largely due to its lack of features and poor value for money. Even when Honda combines its sales figures with the already underperforming BR-V, the overall numbers remain unimpressive. Only 540 units of HR-V and BR-V (combined) were sold so far in FY25 compared to 833 units in the same period a year earlier witnessing a further 35% sales decline.

BAIC BJ40

The BAIC BJ40 is a permanent resident of the extreme bottom of the domestic sales chart, but it keeps finding new lows each passing year. Now as of the first 5 months of FY25, only 11 units of BJ40 have been sold in comparison to 24 units sold in the same period of the previous fiscal year suffering from a further 54% dent in sales.

Isuzu D-MAX

Before BJ40, the Isuzu D-Max was a permanent resident of the extreme bottom of domestic sales charts. Its sales are also going down each passing year. During the first 5 months of this fiscal year, only 36 units have been sold which is 14% less in comparison to 42 units from the same period a year earlier. However, the most concerning thing is that only 3 units were produced in July 2024 and after that, not a single unit of D-Max has been produced which raises huge concerns about its future in Pakistan. Moreover, the company hasn’t shared its November data with PAMA as yet.

Top Performers of the Market

Finally, it’s time to take a look at the top performers of the market. Keep in mind Honda presents the combined number of City and Civic, likewise, Toyota presents the combined number of Fortuner and Hilux, and combines Corolla, Yaris, and Corolla Cross in a unified number. Sazgar also presents the combined number of Haval H6 and Jolion.

UsmanAnsari

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