Vehicle Sales Fell by 80% in May 2023

Sales of passenger vehicles in Pakistan declined by 80% year-on-year in May 2023 mainly due to non-production days, higher prices of cars, and a decline in purchasing power. According to an Arif Habib research report, automobile plant shutdowns caused by the State Bank of Pakistan’s import restrictions, continue to hurt overall production and supply of the automobile sector.

Data released by the Pakistan Automotive Manufacturers Association (PAMA) shows that passenger vehicle sales (of PAMA member companies) plunged to just 3,934 units compared to 19,395 units in May 2022. However, on a month-on-month basis, sales were 38% higher compared with 2,844 units sold in April 2023. As per unofficial numbers, sales of non-PAMA members (Kia, Changan, Proton, DFSK, United) stood at around 1,800 units in May 2023.

Looking at the bigger picture, in 11 months of FY23, a total of 92,554 units were sold, which is 56% less than the 210,633 units sold during the same period in FY22. If the dwindling situation persists in June (most likely) then it will probably be the first time when the cumulative sales of PAMA member companies will remain less than 100,000 units in a fiscal year.

In May 2023, sales of 1300cc and above cars were recorded at 1,445 units, down 85% compared with 9,683 units sold in the same month of the previous year. Then 1000cc cars recorded sales of 430 units only versus 3,528 units in the same month last year, rendering an 87% decline. Below 1000cc vehicles recorded sales of 2,059 units, down by 67% against 6,184 units last year.

In terms of automakers, Pak Suzuki saw a better sales performance due to the availability of CKD parts which resulted in a 101% month-on-month increase to 2,958 units in May 2023. Indus Motors (Toyota) recorded a decline of 12% month on month to 1,718 units in May compared to 1,948 units in April 2023. Honda suffered the grunt with a highest-ever decline selling just 87 units in May 2023 which is also a 58% decline compared to April. Lastly, Hyundai also witnessed a 31% month-on-month decline with only 503 units sold in May 2023.