August 11, 2023 (MLN): Passenger car sales witnessed a significant plunge of around 64.33% YoY in July 2023, clocking in at 3,702 units compared to 10,378 units recorded in the same month last fiscal year, the latest data from the Pakistan Automotive Manufacturers Association (PAMA) showed today.

This sharp decline is attributed to higher interest rates, measures taken by regulators to curb auto imports, and cost-led price hikes.

However, on a sequential basis, the sales of cars declined by 13.06% MoM compared to the 4,258 cars sold in June 2023.

The total production of passenger cars was recorded at 3,498 units in July 2023 down by 75.74% YoY compared to 14,417 in July 2022, similarly, on a monthly basis, the production has decreased by 34.38% MoM compared to 5,331 units.

This was mainly caused by the low economic activity and the high-interest rates that discouraged car financing.

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

The output of Jeep, SUVs, and other vehicles also suffered from unfavorable market conditions.

The maximum number of sales was made within the within the '1300cc and Above' category at 1,694 units. Within this category, Toyota Corolla recorded the highest sales at 1,067 units, followed by Suzuki Swift and Honda Cars (Civic & City) which sold 249 and 208 units respectively.

The second highest number of sales was made 'Below 1000cc' category at 1,586 units. Within this category, Suzuki Alto recorded the highest sales at 1,440 units, followed by Suzuki Bolan which sold 146 units.

On the contrary, the '1000cc' category witnessed a sale of 422 units during the month.

Meanwhile, the total number of trucks sold during the month stood at 195 units, which translates into an increase of 82.24% MoM as compared to the previous month, and marked a decline of 28.83% YoY as compared to the same month of the previous year.

Similarly, motorbike and three-wheelers sales declined by 23.68% YoY in July 2023, to stand at 73,588 units, as compared to 96,421 in July 2022.

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Posted on: 2023-08-11T17:00:06+05:00