January 14, 2019 (MLN): Automotive Industry in Pakistan has sold a total of 16,141 units of passenger cars in the month of December 2018, compared to sales of 16,159 units in the previous month, a 0.11 percent decrease in sales compared to the previous month.
According to the data released by the Pakistan Automotive Manufacturers Association (PAMA), majority of these sales came from sale of 1300 CC and above cars, with a total of 6,532 such cars sold in December. Among these, the sale of Toyota Corolla took lead with 4,179 units sold in that month, compared to 1,989 units sold of Honda cars (Civic and City). Sales of Suzuki Swift, however, fared the poorest with only 355 units sold in December.
Likewise, sales of 1000 CC cars were recorded at 4,722 units in that month, with the bulk of those sales attributed to Suzuki WagonR of which a total of 2,740 units were sold in December, compared to the 1,982 units sold of Suzuki Cultus, the only other car in this category.
Cars that are of 800 CC and those below 1000 CC saw sales of 4,896 units, with 3,228 units of Suzuki Mehran sold, followed by 1,668 units of Suzuki Bolan.
The passenger car segment remains in trouble as the recent price increase in Jan-2019 by major automobile companies could drastically impact volumes.
Moreover, the entrance of new players in the industry by the end of 2019 would further distress the industry in the form of oversupply. With a looming economic slowdown, it is improbable that demand will grow sufficiently to account for the additional capacity from the new players, which will likely result in a scuffle for market share and pricing power.
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