Local auto industry continued to show dismal performance during the first 7 months of fiscal year 2019-20 with cars sales declining by 44% year-on-year, according to the data released by Pakistan Automotive Manufacturers Association (PAMA).
However, on month-on-month basis there was some improvement. In January 2020 car sales went up 1.08% with 10,095 units, from 9,987 units in December 2019, whereas over the 7-month period of this fiscal year, they nosedived by 44% to 69,192, from 123,391 units sold in the same period a year earlier.
While sales of Honda Civic & City (combined) saw 1,878 units sold in January 2020 compared to just 884 units in December 2019, these two models faced an overall drop by 66% during the first 7 months of this fiscal year to 8,797 units, as compared to 25,810 units in same period last fiscal year.
Toyota Corolla sales increased to 3,445 in January versus 2,085 units in December 2019 however they fell by 54% in 7M-FY20 to 15,187 units sold in the corresponding period a year earlier.
Among Suzuki, the Swift sales came down by 54% to 1,280 units in 7M-FY20 and 48% to just 144 units in January from 277 units in December last year. This is also the lowest ever sales figure in any month for Suzuki Swift in Pakistan.
Sales of Suzuki Cultus and WagonR dipped by 36% and 73% to 8,310 units and 5,113 units respectively in 7M-FY20. However, Cultus witnessed a major improvement in January as sales climbing up to 1,701 units in January, from 918 in December. Meanwhile, the monthly figures for WagonR were dismal with just 567 units sold in January versus 1,207 in December last year. Sales of Alto 660cc clocked in at 25,452 during the 7-month period, however it took a dip by 52% in January 2020 selling 1,794 units– the lowest ever since the hatchback was launched in June last year.
As for other vehicles, Toyota Fortuner and Honda BR-V sales witnessed 54% and 48% declines to 702 and 1,559 units in 7M-FY20 while that of Suzuki Ravi and Toyota Hilux came down by 53% and 43% to 5,045 and 2,308 units. Isuzu D-Max showed recovery in January with 40 units sold compared to just 14 in December 2019. As of the first 7 months of this fiscal year Ghandhara has managed to sell 304 units of D-Max in Pakistan.
The rest of the segments also showed a bleak picture as trucks sales fell by 44.8%, buses by 30.6%, 4x4s & SUVs by 49.7%, LCVs (pickups) by 47.3%, farm tractors by 37.6% and two- and three-wheelers by 11%.
According to analysts the decline in car sales is attributed towards higher prices and soaring interest rates. It is pertinent to mention that despite Rupee recovering by 6% against the US Dollar, car prices were not reduced in fact were further increased by local auto assemblers which continued to cast negative effect on car sales.