Car sales plunge by 55.55% YoY in 1HFY24

January 11, 2023 (MLN): Passenger car sales plunged by 55.55% YoY in the first half of FY24, clocking in at just 30,662 units compared to 68,912 units recorded in the same period last year, the latest data from the Pakistan Automotive Manufacturers Association (PAMA) showed today.

Meanwhile, on a sequential basis, the sales of cars inched up by 0.84% MoM compared to the 4,875 cars sold in November 2023. While it fell by 64.33% YoY when compared to the sales in December 2022.

The total production of passenger cars was recorded at 30,786 units in 1HFY24, down 56.87% YoY as compared to 71,378 units in 1HFY23.

In the month of December alone, production was recorded at 6,654 units, up significantly by 55.8% MoM compared to 4,271 in November 2023.

Conversely, on a year-on-year basis, the production has decreased by 51.64% YoY compared to the production of 13,758 units in December 2022.

The auto industry in Pakistan has been struggling with various issues including high inflation, currency depreciation, low demand, and political uncertainty.

These issues, compounded by recent supply chain disruptions in securing critical parts and materials, have added to the woes of the sector.

Although the State Bank of Pakistan (SBP) has eased import restrictions, the auto sector's priority remains relatively low, with a higher preference given to sectors such as medicine, etc.

Some restrictions persist on certain essential parts, which significantly hamper the production capabilities of auto assemblers.

The dollar shortage has severely affected the imports of car parts and raw materials, forcing some plants like Honda and Suzuki to shut down temporarily.

The data released by PAMA further showed that the maximum number of sales was made within the ‘Below 1000cc’ category at 14,584 units in 1HFY24. Within this category, Suzuki Alto recorded the highest sales at 13,405 units, followed by Suzuki Bolan which sold 1,179 units.

The second highest number of sales was made within the ‘1300cc and Above’ category at 12,341 units in the first half of FY24.

Within this category, Toyota (Corolla & Yaris) recorded the highest sales at 5,279 units, followed by Honda Cars (Civic & City) which sold 3,938 units.

The '1000cc' segment witnessed a sale of 3,737 units during the review period.

The total number of trucks sold stood at 810 units during 1HFY24, which translates into a decrease of 50.22% YoY as compared to 1,627 units in the same period last year.

Meanwhile, motorbike and three-wheelers sales decreased by 13.7% YoY in the first half of FY24, to stand at 541,821 units, as compared to 627,835 in 1HFY23.

The production of motorbikes and three-wheelers fell 13.62% YoY to 543,773 units in 1HFY24.

Honda held the majority share in both the production and sales of 2/3 wheelers, clocking in its sales at 470,399 units and production at 470,706 units in 1HFY24.

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