Car sales in Pakistan took a hit in October 2023, with only 6,200 cars finding new owners. This drop, reported by HTAuto using data from the Pakistan Automotive Manufacturers Association (Pama), reveals a tough time for the country’s economy, showing a 26% decrease in car sales compared to the previous month.
In October, the Pama data reveals a further decline in car sales, dropping to 6,200 units from the previous month’s 8,400 units. The HTAuto report suggests that even when considering unaccounted-for car sales, the total only reaches 7,000 units, significantly down from the 9,500 units in September.
To put things in perspective, comparing these figures to 2022 shows a notable decrease, with Pakistan’s car industry recording 15,000 units in sales during that period.
Why Cars Sales Have Dropped in Pakistan?
The car industry is going through a tough time, facing challenges without any apparent solutions on the horizon. Not only has the demand for cars dropped significantly, but the prices of products have also shot up, thanks to the sharp decline in the value of Pakistan’s rupee.
Adding to the woes, the government has imposed hefty duties on the import of ancillary parts for the automobile industry. While this move aims to cut down on import expenses, it has led to a noticeable increase in the prices of cars.
The combination of reduced demand and higher prices is creating a challenging environment for the automobile sector in Pakistan.
In the initial four months of the 2023-24 financial year, Pakistan saw a considerable slump in car sales, tallying up to just 27,163 units. This marks a noteworthy 44% decrease from the 48,473 units sold during the same period in the previous year.
Key players in the Pakistani car market, such as Atlas Honda, Pan Suzuki, Toyota, Hyundai, and Kia, dominate the scene. Notably, the country lacks substantial local manufacturing capabilities. The decline in sales is not confined to four-wheelers; it extends to the two-wheeler market and the commercial vehicle segment as well.
Even motorcycle sales have taken a hit, experiencing about a 10% decline in the initial four months of the financial year. This downturn is primarily attributed to the diminishing purchasing power among the general population, as reported by HTAuto.
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.”