KARACHI – The car sales in Pakistan witnessed a significant decline during the first seven months (July–January) of the fiscal year 2019–2020, as total sales of locally assembled vehicles fell by 45 percent.
According to data released by the Pakistan Automobile Manufacturers Association (PAMA), only 78,806 units were sold during this period, compared to 142,579 units sold in the same period of the previous year.
A major contributor to this sharp decline in car sales was Honda Atlas Cars, which recorded a massive 64 percent drop. Sales fell from 28,796 units last year to just 10,356 units in the current fiscal year. Indus Motor Company, which assembles Toyota vehicles in Pakistan, also saw a 53 percent decline in sales, falling to 18,197 units from 38,880 units in the same period of the previous fiscal year.
Meanwhile, Pakistan Suzuki Motor Company (PSMC), the market leader in small car segments, experienced a 33 percent reduction in car sales, down from 74,903 units to 50,253 units during the July to January period.
Analysts at Topline Securities pointed out an unusual trend in January 2020, as overall car sales dropped by two percent on a Month-on-Month (MoM) basis. This trend runs contrary to the usual January pattern, where car sales typically show an increase due to the “new year” effect when buyers prefer purchasing new model-year vehicles. The last time a MoM drop was seen in January occurred back in 2006.
Interestingly, excluding the sales figures of Pak Suzuki Motors, overall car sales showed an 87 percent increase on a MoM basis. Analysts attributed this to pre-buying in December 2019, ahead of the announced price hike by PSMC, which took effect in January 2020. In December alone, Pak Suzuki Motors reported a 49 percent MoM surge as consumers rushed to purchase vehicles before the price increase.
The ongoing challenges faced by the auto industry—such as rising car prices, currency depreciation, and reduced consumer purchasing power—continue to weigh heavily on Pakistan’s car sales outlook.