The cost of new cars decreases by the end of the year, typically anywhere in November or December. You can take advantage of a lot of discounts and deals at this time. But as the prices of cars in Pakistan are constantly fluctuating every week, it’s hard to say which exact month would be best to buy a new car in Pakistan.
The last two months of the year are typically when people spend the most money, so for many businesses, year-end equals increased sales. New car models are introduced into the market, which then slightly cuts off the overall prices of the previous models.
However, for automakers, the situation is the exact reverse. In addition to weak economic growth, the year-end phenomenon is the main cause of decreased sales at the end of the year.
Before considering safety features or any other amenities, Pakistani customers prioritize the car’s resale value when purchasing a vehicle.
The year a vehicle was manufactured, which directly affects its resale value, is the sole aspect that varies annually because automakers don’t like to update their vehicles very frequently in Pakistan.
If given support, the auto industry, which now makes up barely 3% of the GDP, has a much greater chance of changing the economic landscape on its own. At the same time, car prices in Pakistan have surged up to 149% in the past five years.
Sluggish Economy Hurts Auto Sector in Pakistan
In April 2023, the Pakistani vehicle market registered 4,443 new registrations (-80.2%), marking the tenth consecutive monthly decline.
The 30,556 YTD results represent a 66.6% decrease from the prior year.
The country’s automobile sector collapsed as a result of the excessive rain, which also caused numerous cars to be wrecked both on the road and at dealerships.
According to total brand sales from April 2018 to April 2023, Suzuki is in first place with 11,026 sales (-77.7%), followed by Toyota with 9,233 sales (-62.0%), Honda with 5,382 registrations, and Hyundai with 3,972 sold units.
With 857 sales, Haval jumps up to fifth place, and BAIC follows in sixth with 96 new registrations (-25.0%).
When it comes to individual models, the Suzuki Alto leads with a volume decline of 84.7% year over year, followed by the Toyota Corolla with a decline of 73.6%.
Due to the substantial taxes imposed by the Government, Pakistan’s automotive industry is on the verge of extinction.
The industry is so dependent on a handful of foreign (Japanese) companies that invested in local production years ago and now sell out-of-date models at exorbitant prices (relative to the local purchasing power).
In any case, the market for light vehicles was expanding up until the 2019 introduction of new duties, with an all-time high set in 2018 at 264K.
The market crashed in 2019 as a result of rising prices that were connected with rising taxes, and it did so again in 2020 as a result of COVID regulations, reaching its lowest point in the previous 15 years.
Despite growing by 89.4% in 2021, the market suffered significantly in 2022.
Heavy floods that started in June 2022 in Pakistan decimated the nation and caused the collapse of the automotive sector.
In actuality, the latter six months of the year showed losses, and the final 2022 sales totaled 231,248 (-4.8%).
Pakistan’s import limitations on raw materials and the devaluation of the rupee combined to drive up car prices by an astounding 35 to 40% on the local market.
Even worse, the cost of raw materials skyrocketed on the international market.
Automobiles are not the only item in Pakistan that has mostly fallen out of reach.
Since last year, the government has raised the prices of petroleum items by at least three times.
In Pakistan, the costs of new and used cars are equal. Used cars also cost more, and by roughly the same percentage, as new cars do.
Two of Pakistan’s largest automakers, Suzuki Motors, and Honda, increased the pricing of cars between Rs. 115,000 and Rs. 355,000 and Rs.300,000 and Rs. 550,000, respectively.
According to a notice the business sent to dealers last month, Toyota Motors raised the prices of various models by up to Rs1.2 million. And now it’s fairly hard for customers to find a good car under 30 Lakhs in Pakistan.
Automakers said that increased input costs and currency depreciation obliged them to raise prices.
Many new automakers, including KIA, MG, Hyundai, Changan, DFSK, Proton, Haval, and many others, have recently expanded into Pakistan with their high-end vehicles.
Pakistanis have been waiting for these manufacturers to arrive for some time to put an end to the dominance of the country’s top three automakers.
However, recent inflation and political unrest in the nation have created numerous challenges for the auto industry.
Sales of automobiles have significantly decreased as a result of inflation and a shortage of auto parts. However, despite the challenging economy, several businesses are still doing quite well.
Which Cars Are Good to Buy in November & December in Pakistan
Here are good options to consider:
1. Suzuki Alto:
Without question, the most well-liked and sought-after car in Pakistan is the Pak Suzuki Alto. A hatchback with a 658 cc engine is the cheapest car in Pakistan.
The Alto is well renowned for its incredible fuel economy and small size. Despite the manufacturing bottleneck, PSMC sold a healthy 37720 units of the Alto.
2. Suzuki Swift:
Due to its gorgeous and graceful design, the all-new Suzuki Swift is currently the second most popular Suzuki vehicle in Pakistan.
The vehicle, a hatchback, has a 1200cc engine with manual and automatic gearbox options as well as a tonne of modern conveniences.
Alongside the Alto, the Swift is right now the car that Pakistanis want the most.
3- Suzuki Cultus:
Another addition to Pak Suzuki’s top-selling vehicles this year is Cultus. Since the previous year, Pak Suzuki’s sales have climbed by almost 42%.
This is a result of the corporation beginning to sell new and improved versions of its autos.
Due to its new fashionable appearance, high fuel economy, and wonderful new features, the new Cultus has experienced a significant boost in sales.
4- Honda City:
The brand-new Honda City of the sixth generation has swept the nation. The city is the second most popular automobile in Pakistan, behind the Toyota Corolla.
Most people love it for how comfortable and beautiful it looks. People are anxiously waiting to reserve their new Honda City despite the paucity of parts and the delayed deliveries.
Which regions/provinces are best to buy a used or new car in Pakistan?
Before the digitization of excise data, tasks like getting a car transferred into your name or paying an annual token were difficult.
In Pakistan, you can purchase a new or used car from any region or province. Used cars are also available.
Customers still don’t like buying cars that are licensed in another city or province. Cars with Karachi registration are offered for sale in Lahore for less than market value.
Do you realize that purchasing a secondhand automobile also has several benefits? Not only can you save money, but you also have a variety of models, including JDMs, to pick from.
Used automobile sales are soaring in Pakistan since the country’s population is well aware of the value of these vehicles.
So as far as the right month to buy a car in Pakistan is concerned, there’s no definite answer to this as car prices are rising every passing day. But most people prefer buying cars in November or December in Pakistan when the prices of old car models slightly fall down.
Hi there! My name is Kashif Hussain, the lead author of PakDrive. I am a huge car enthusiast and avid traveller. I have a deep passion for exploring the world and experiencing new cultures, and I love nothing more than hitting the open road and discovering new adventures behind the wheel of my favourite car. Whether I’m cruising down a winding mountain road or speeding down the highway, there’s nothing quite like the feeling of the wind and the purr of the engine beneath me. I hope to share my love of cars and travel with all of you through my writing, and I can’t wait to see where the road takes us next.”