Nosediving Sales Figures Continue to Haunt Local Assemblers

Car sales in Pakistan continue to haunt local assemblers as the figure hit rock bottom. Since the last 2 months (sparing 4x4s/ SUVs/ pickups) sales of passenger cars have been clocked at less than 5.000 units for the whole of PAMA member companies which is alarming.

Overall, the numbers are even lower than in 2020—the year that was impacted by the pandemic—and in fact, is now below the levels of 20 years ago. In November 2023, sales fell by 68.41% year on year with only 4,875 units sold compared to 15,432 units sold in the same month of the previous year.

Related: November: Car Sales Plunge by Over 68% YoY

As of the first 5 months of this fiscal year, sales of passenger cars went down by 53% from 55,132 units in 5M-FY23 to just 25,746 units in 5M-FY24. On the other hand, sales of 4x4s/ SUVs and pickup segment also witnessed a decline with sales slipping by 35% from 11,972 units to only 7,594 units in the discussed period. However, the sales decline in the lower-priced segment (sedans & hatchbacks) at 53% is more damaging than the 35% witnessed in the much pricier SUV segment.

Honda showroom pk

In terms of automakers, Honda Atlas suffered a massive decline with City and Civic combined, as the duo saw 7,952 units sold during the first 5 months of the previous fiscal year vs just 3,151 units in the same period of this fiscal year, rendering a 60% decline in sales. The combined number of HR-V and BR-V went down from 1,099 units in 5M-FY23 to just 833 units in 5M-FY24, witnessing a 24% decline in sales.

yaris rolla 2

Sales of Toyota Corolla & Yaris combined, went down by 54% from 10,186 units a year earlier to 4,725 units in the discussed period of this fiscal year. The combined number of Fortuner & Hilux also went down by 66% from 5,298 units in 5M-FY23 to only 1,789 units during the first 5 months of this fiscal year.

Related: Auto Financing Declined for 16th Consecutive Month

Pak Suzuki remains the worst affected of the lot. Sales of Swift went down from 5,708 units to just 1,852 units during the discussed period of this fiscal year witnessing a 68% decline in sales. In the 1000cc segment, which consists of Cultus and Wagon R, the duo suffered from a 56% plunge in sales from 6,983 in the first 5 months of the previous fiscal year to 3,031 units in the current fiscal year.

In the below 1000cc segment which consists of Alto and Bolan, sales of the two (combined) went down by 46% from 22,688 units to 12,159 units. Lastly, Suzuki Ravi in the commercial vehicle segment saw its sales come down by 26% from 1650 units in 5M-FY23 to 1,220 units in the discussed period of this fiscal year.

Sonata white blk

Hyundai-Nishat suffered a decline too, which is the worst in the case of Elantra. The sedan went down from 1,137 units sold in 5M-FY23 to only 426 units for a 63% decline in sales. Sonata, however, was impacted less with a 20% decline from 504 units in the first five months of the previous fiscal year to 402 units in 5M-FY24. Tucson also suffered from a decline but very less in severity, coming down from 1,877 units to 1,558 units for a 17% decline. Hyundai however has seen a great response to their newly launched flagship & priciest Santa Fe hybrid SUV which has clocked 298 units in the first two months of its presence in the market.

Jolion n 01

The performance of Haval SUVs has been quite phenomenal even in these challenging times. It is the only automaker to post an upward trajectory in sales with 1,233 units sold in 5M-FY24 compared to 416 units for a 197% surge in sales. Since locally assembled Haval was formally introduced in September of last year, even if we compare the 3 months (Sep-Nov) period, the sales show a 98% improvement with 821 units sold in the last 3 months compared to 416 units in the same period of the previous year.

Related: Car Sales Hitting Below the 20-year Sales Average

The rest of the table looks depressing. Isuzu with its only offering D-Max continues to sit at the bottom of the domestic sales chart with just 42 units sold during the first 5 months of FY24 compared to 104 units in the same period of last year rendering a 60% decline in sales. Scenes with BAIC BJ40 are also quite hopeless, as not a single unit of the SUV was either produced or sold in November. Overall its tally stands at 24 units in the first 5 months of the current fiscal year versus 53 units in the same period of the previous year, showing a 54% reduction in sales.

Chery has stopped sharing its data with PAMA, although it is among the PAMA member companies, there is no concrete information on whether the company is producing units or has halted its assembly operations. Gandhara (the assemblers of Chery vehicles in Pakistan) announced a plant shutdown in March and then announced in May 2023 to continue the shutdown for an indefinite period. The company sold 659 units of Chery Tiggo SUVs in the first 5 months of the previous fiscal year, but perhaps not a single unit so far in this fiscal year.

Related: How Can Car Sales Improve in Pakistan?

The situation at non-PAMA members including Kia, Proton, Regal (Prince/ DFSK), Peugeot, Changan, and United isn’t too promising either. Although exact data isn’t available, industry sources are reporting a steep decline in sales with these companies. Analysts have been predicting a further drop in sales during the ongoing fiscal year, and the sales by June 2024 are expected to get a 14% YoY dent. We can only pray at this stage for things to improve but looking at the ongoing scenario, hoping for auto sales to revive on their own will be a sheer fantasy. Unless stern measures are taken to uplift the economy, the overall spending activities will remain subdued.

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