Auto sales drop by 38% in 9MFY24 due to rising prices, high interest rates

Auto sales in Pakistan declined by 3% month-over-month (MoM) to 9,379 units in March 2024, down from 9,709 units in February, according to the latest data released by the Pakistan Automotive Manufacturers Association (PAMA).

On a yearly basis, the March 2024 sales were 1% lower than the 9,472 units sold in March 2023.

During the first nine months (July-March) of the fiscal year 2024, auto sales dropped by 38% to 69,078 units compared to 110,898 units in the same period last fiscal year. 

This decline was mainly due to a decrease in auto financing, a 22% interest rate, rising prices, and reduced consumer purchasing power.

In the 1,300cc and above category of cars, Honda Civic and City sales dropped by 31% to 8,514 units from 12,381 units in 9MFY24. 

Suzuki Swift sales decreased by 58% to 3,586 units from 8,584 units.

Toyota Corolla, Yaris, and Cross sales decreased by 33% to 10,728 units in July-March FY24 from 15,994 units in the same period last year.

Hyundai Elantra and Sonata sales fell by 59% and 43% to 778 and 611 units, respectively, from 1,886 and 1,066 units in 9MFY23.

In the 1,000cc category, Suzuki Cultus and WagonR sales dropped by 55% and 47% to 2,803 and 2,752 units from 6,233 and 5,022 units in 9MFY23.

Suzuki Bolan and Alto sales in the below 1,000cc category decreased by 55% and 26% to 1,734 and 22,683 units from 3,865 and 30,744 units in 9MFY24.

Sales of Toyota Fortuner and Revo in the LCVs, vans, and jeeps category plunged by 69% to 2,973 units from 9,598 units in 9MFY23. 

Hyundai Tucson, and Honda BR-V and HR-V sales dropped by 39% and 64% to 2,429 and 1,415 units, respectively, from 3,952 and 3,897 units.

However, Sazgar Haval sales increased by 153 percent to 3,136 units in 9MFY24 from 1,238 units, and JAC X-200 and Hyundai Porter sales rose to 494 and 1,318 units from 490 and 998 units.

PAMA data shows that tractor sales increased by 66% to 35,199 units in July-March from 21,233 units in the same period last year. 

Sales of trucks, buses, and two or three-wheelers fell by 45%, 39%, and 10%, respectively.

Truck sales fell to 1,548 from 2,825, and bus sales were recorded at 340 compared to 557 in 9MFY23.