Dismal November: Passenger car sales plunge by over 68% YoY in Pakistan

Pakistan's auto sector struggles with inflation, currency woes, and supply chain disruptions

In November 2023, there was a substantial 68.41% year-on-year drop in passenger car sales, with only 4,875 units sold compared to 15,432 units in the same month last year, according to the latest data from the Pakistan Automotive Manufacturers Association (PAMA).

On a month-on-month basis, car sales increased marginally by 0.52%, reaching 4,875 units compared to 4,850 units in October 2023.

The total production of passenger cars in November 2023 increased by 10.42% month-on-month to 4,271 units, compared to 3,868 units in October 2023. However, on a year-on-year basis, production decreased by 72.46% compared to the 15,506 units produced in November 2022.

In the first five months of fiscal year 2024, car sales plummeted by 53.30% year-on-year, totaling 25,746 units, reflecting the challenges faced by the auto industry in Pakistan. The industry is grappling with issues such as high inflation, currency depreciation, low demand, political uncertainty, and recent disruptions in the supply chain.

Despite some easing of import restrictions by the State Bank of Pakistan, the auto sector continues to face challenges, with certain essential parts still subject to restrictions. The shortage of dollars has significantly impacted the import of car parts and raw materials, leading to temporary shutdowns of plants like Honda and Suzuki.

The data from PAMA also revealed that the ‘Below 1000cc’ category accounted for the maximum sales, with 2,113 units sold. Suzuki Alto led in this category with 1,944 units sold, followed by Suzuki Bolan with 169 units. The ‘1300cc and Above’ category saw the second-highest sales at 2,033 units, with Honda Cars (Civic & City) leading at 912 units, followed by Toyota (Corolla & Yaris) with 693 units.

Truck sales in November 2023 stood at 128 units, marking an 18.47% month-on-month decrease and a 56.76% year-on-year decrease. Motorbike and three-wheeler sales also declined by 20.36% year-on-year, totaling 88,493 units. The cumulative production and sales of motor vehicles in the first five months of fiscal year 2024 were 459,459 and 459,703, respectively, reflecting a 12.31% and 11.98% year-on-year decrease. Honda dominated the production and sales of two/three-wheelers, with 398,303 units sold and 398,058 units produced in the first five months of fiscal year 2024.

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