The data for June 2023 is out, and with that, the Pakistani automotive industry can finally breathe a sigh of relief. The industry has survived the worst financial year since the pandemic struck, which wreaked havoc on the economy and consumer demand. The data released by the Pakistan Automotive Manufacturers Association (PAMA) shows that the total volume of vehicles sold across all segments in the fiscal year 2023 was 13.48 lakh units — a 37.7% decline from the fiscal year 2022, when 21.63 lakh units were sold.
Passenger cars segment: The colossal collapse
The passenger cars segment was the hardest hit among all segments of vehicles, as its sales plummeted by more than half from the previous fiscal year. The segment comprises various categories of passenger cars, such as 1000cc, 1300cc above 1300cc, and SUVs. The data indicates that the aggregate sales of passenger cars in the fiscal year 2023 amounted to 1.17 lakh units — a 55% plunge from the fiscal year 2022, when 2.61 lakh units were sold.
The downturn was evident across all categories of passenger cars. The 1000cc category suffered the most, as its sales plunged by 73.2% from 46,300 units in FY 2022 to 12,390 units in FY 2023. The above 1300cc category experienced the second most decline in sales by 57.25% from 104,321 units in FY 2022 to 44,596 units in FY 2023.
The below 1000cc fared marginally better with a decline of 52.34% from 83,559 units in FY 2022 to 39,826 units in FY 2023. The category that showed some resilience was the SUV category, which witnessed a slight decrease in sales by 14% from 27,608 units in FY 2022 to 24,190 units in FY 2023.
Among the major car manufacturers, Suzuki suffered the most, as its sales nosedived by 55% from 1.36 lakh units in FY 2022 to 61,555 units in FY 2023. The only model that showed an increase in sales was Swift, which sold 9,339 units in FY 2023 — up by 50.8% from 6,190 units in FY 2022. However, this was not enough to compensate for the losses incurred by other models such as Alto, Wagon R, Cultus, Bolan and Ravi — which all witnessed a steep decline in sales.
Toyota also faced a significant drop in sales by 58.3% from 74,533 units in FY 2022 to 33,104 units in FY 2023. The Corolla and Yaris models — which accounted for the majority of Toyota’s sales — saw a massive decrease in sales by 66.7% from 56,528 units in FY 2022 to 18,838 units in FY 2023. The Fortuner and Hilux models also experienced a decline in sales by 31.9% from 18,005 units in FY 2022 to 12,266 units in FY 2023.
Honda was the least affected among the major car manufacturers overall, as its sales decreased by only 22,000 or 57% from 35,197 units in FY 2022 to 16,879 units in FY 2023. The Civic and City models remained the most popular among Honda’s customers — as they sold 12,823 units in FY 2023 — down by only 63.5% from 35,197 units in FY 2022. The Honda BRV/HRV models also maintained their sales level at around 4,000 units.
Hyundai’s sales declined by 25.85% from 11,287 units in FY 2022 to 8,369 units in FY 2023. The Tucson model was the best seller for Hyundai — as it sold 4,774 units in FY 2023 — down by only 2.5% from 4,895 units in FY 2022. The Elantra and Sonata models also saw a decline in sales ranging in the 40%s.
Sazgar was a newcomer in the car market — and it showed a remarkable growth in sales by 291.4% from 467 units in FY 2022 to 1,827 units in FY 2023. The Haval model was the main contributor to this growth — as it sold 1,657 units in FY 2023 — whilst the BAIC models sold only 170 units.
LCVs, and VansÂ
In the van segment, Suzuki’s sales decreased from 14,230 units in FY 2022 to 3,808 units in FY 2023. In the LCV segment, Ghandhara’s sales decreased from a total of 1,404 units in FY 2022 to a total of 750 units in FY 2023. Hyundai’s LCV sales decreased from 1,845 units in FY 2022 to 1,319 units in FY 2023.
Tractors, Buses, and Trucks: Decline all around
In the truck and bus segment, sales fell sharply by 45.2%, from 6,498 units to 3,836 units. Hino saw a decrease in truck sales from 889 to 584 units, while its bus sales increased from 160 to 254 units. Master experienced a decrease in both truck and bus sales, from 1,731 to 971 units and from 413 to 263 units respectively. Ghandhara’s truck sales decreased from 3,182 to 1,627 units, while its bus sales increased slightly from 123 to 137 units.
In the tractor segment, sales experienced a heavy drop of 47%, from 58,947 to 30,942 units. Al-Ghazi’s sales decreased from 23,942 to 12,320 units and Millat Tractors’ sales decreased from 35,005 to 18,622 units.
Two wheelers and three wheelers segment: Honda holds the fort as the industry dipsÂ
The sales of two wheelers and three wheelers saw a minor dip by 34.8% from 18.21 lakh units in FY 2022 to 11.87 lakh units in FY 2023.
The data provided by the user shows that Atlas Honda was the market leader in the two wheeler segment, as it sold 10.05 lakh units in FY 2023 — down by 26.1% from 13.60 lakh units in FY 2022. Suzuki was the second largest player in the two wheeler segment, as it sold 29,274 units in FY 2023 — down by 22.6% from 37,846 units in FY 2022. Qingqi was the smallest player in the two wheeler segment, as it sold only 58 units in FY 2023 — down by 19.4% from 72 units in FY 2022.
Qingqi was the market leader in the three wheeler segment, as it sold 6,300 units in FY 2023 — down by 54.8% from 13,935 units in FY 2022. Sazgar was the second largest player in the three wheeler segment, as it sold 9,381 units in FY 2023 — down by 40.2% from 15,683 units in FY 2022. Road Prince and United were the smallest players in the three wheeler segment, as they both sold only around 1,700 units each in FY 2023 — down by more than two-thirds from around 90,000 units each in FY 2022.
Ravi, Yamaha and Road Prince were the other notable players in the two wheeler segment, as they sold between around 600 to around 13,000 units each in FY 2023 —down by more than half from between around 4,000 to around 90,000 units each in FY 2022. United was the only other notable player in the three wheeler segment, as it sold 1,708 units in FY 2023 — down by 45.9% from 3,156 units in FY 2022.
Interesting tidbits
Suzuki’s Swift was the only car model that showed an increase in sales in FY 2023 among the major car manufacturers, as it sold 9,339 units, up by 50.8% from 6,190 units in FY 2022. Hyundai’s Tucson was the only car model that showed a minimal decrease in sales in FY 2023 among the established players, as it sold 4,774 units, down by only 2.5% from 4,895 units in FY 2022. Sazgar’s Haval was the only car model that showed a significant increase in sales in FY 2023 among the newcomers, as it sold 1,657 units, up by 291.4% from 467 units in FY 2022.
Assembler industry needs to go. either make from local steel or shut down
Several factors can contribute to the challenges faced by the automotive industry, such as economic downturns, changes in consumer behavior, and disruptions in the supply chain. The COVID-19 pandemic has also had a significant impact on industries worldwide, including automotive.