In the midst of ongoing economic uncertainty, the automobile sector has encountered a substantial decline in car sales, marking another significant setback.
The most recent data released by the Pakistan Automotive Manufacturers Association (PAMA) unveils a noteworthy trend, with exclusive member carmakers collectively retailing a mere 5,092 vehicles during July 2023. This figure represents a notable downturn both in comparison to the previous month, with a 16 per cent decrease in sales, and to the same period last year, with a staggering 57 per cent reduction.
Among the industry leaders, the Toyota Indus Motor Company (IMC) experienced a sales figure of 1,368 cars, indicating a 26 per cent reduction in sales on a month-on-month basis. On the other hand, the Honda Atlas Cars Limited (HACL) reported a sale of 494 cars, reflecting an unexpected 61 per cent surge in monthly sales. Meanwhile, the Pak Suzuki Motor Company (PSMC) encountered a decline of 19 per cent in its monthly sales, with a total of 2,444 cars sold.
Hyundai Nishat Motors Private Limited (HNMPL) also made its mark by selling 569 cars in the past month, showcasing a modest 2 per cent increase in sales compared to the previous month. The resounding success of the Tucson model has been a driving force behind the company’s performance.
While a slight uptick in sales has been witnessed, the overarching trajectory of the local car industry remains somber. Production disruptions persist as car companies grapple with inventory shortages, further exacerbated by the escalating prices and taxes that have curbed consumer demand.
Experts caution that the challenges facing the industry are far from over, with more potential production obstacles and price escalations looming on the horizon. The road ahead continues to be a demanding one, requiring the industry to navigate through these formidable headwinds.