Bumpy road! Pakistan car sales continue to fall; 6,200 units sold in Oct

Motorcycle sales in Pakistan have declined by around 10% in the first four months of the financial year, which is largely due to the decreasing purchasing capacity among the common masses

Car sales in Pakistan continue to decline, with the country registering 6,200 units of cars being sold in October 2023, underlining the grim state of the Pakistani economy. According to a report by HTAuto, which cited data from the Pakistan Automotive Manufacturers Association (Pama), car sales have declined by 26 per cent month-on-month in Pakistan.

The Pama data for car sales shows that the month of October continued to register a downfall in car sales with just 6,200 units, down from 8,400 units sold in September. The HTAuto report said that even taking the sales of the cars not accounted for in the Pama report, the total figure of 7,000 units is a steep fall from 9,500 units sold in September. Comparing this figure to the sales in 2022, Pakistan's car industry registered 15,000 units of car sales.

The automobile industry at large has faced challenges with no relief in sight. While the demand for cars has plummeted, the prices of products have increased due to the sharp fall in the value of Pakistan's rupee.

Moreover, the Pakistan government has introduced high duties on the import of ancillary parts for the automobile industry to reduce the import bills, which has resulted in the prices of cars going up.

Read more about Pakistan's car industry here

Pakistan has recorded sales of only 27,163 units of cars in the first four months of the financial year 2023-24. This is a significant decline of 44 per cent from the 48,473 units sold during the same period last year.

Major carmakers in the Pakistan market include Atlas Honda, Pan Suzuki, Toyota, Hyundai, and Kia. The country does not have any significant local manufacturing capacities. The decline in sales is not limited to four-wheelers but reaches the two-wheeler market along with the vehicles sold in the commercial segment.

Motorcycle sales have also declined by around 10 per cent in the first four months of the financial year, which is largely due to the decreasing purchasing capacity among the common masses, the HTAuto report said.