Car sales plunge by 68.41% YoY in November

December 11, 2023 (MLN): Passenger car sales plunged by 68.41% YoY in November 2023, clocking in at just 4,875 units compared to 15,432 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 0.52% MoM compared to the 4,850 cars sold in October 2023.

The total production of passenger cars was recorded at 4,271 units in November 2023 up by 10.42% MoM compared to 3,868 in October 2023.

Conversely, on a year-on-year basis, the production has decreased by 72.46% YoY compared to the production of 15,506 units in November 2022.

In 5MFY24, car sales stood at 25,746, plummeting by 53.30% YoY compared to the same period last year.

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 2,113 units. Within this category, Suzuki Alto recorded the highest sales at 1,944 units, followed by Suzuki Bolan which sold 169 units.

The second highest number of sales was made within the ‘1300cc and Above’ category at 2,033 units. Within this category, Honda Cars (Civic & City) recorded the highest sales at 912 units, followed by Toyota (Corolla & Yaris) which sold 693 units.

The '1000cc' segment witnessed a sale of 729 units during the review month.

The total number of trucks sold during the month stood at 128 units, which translates into a decrease of 18.47% MoM and 56.76% YoY as compared to 157 units in the previous month and 296 units in the same period last year.

Meanwhile, motorbike and three-wheelers sales decreased by 20.36% YoY in November 2023, to stand at 88,493 units, as compared to 111,111 in November 2022.

Similarly, the production fell 13.22% MoM compared to 101,976 units produced in October 2023.

The total cumulative production and sales for motor vehicles in 5MFY24 stood at 459,459 and 459,703, down by 12.31% YoY and 11.98% YoY respectively.

Honda held the majority share in both the production and sales of 2/3 wheelers, clocking in its sales at 398,303 units and production at 398,058 units in 5MFY24.

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