Pakistan’s automotive industry has experienced a significant downturn, with an 82 percent drop in the sales of cars with a 1000CC engine capacity during the period of January to July in 2023.
This sharp decline is a concerning trend for the country’s auto sector. Industry data reveals that only 3,900 units of 1000CC cars were sold in the first seven months of the current calendar year, a stark contrast to the 21,098 units sold during the same period in the previous year. This decline has impacted various segments of the car market.
The research conducted by Arif Habib Research further indicated a 72 percent decrease in sales for passenger cars with engine capacities of 1300CC and above. These sales dwindled to 16,340 units from the 58,785 units sold during the corresponding months of the last year.
Even the sales of cars with engine capacities below 1000CC were not immune to this market slump. The data shows a staggering 77 percent reduction to 11,362 units in the review period, compared to 49,901 units in the same period the previous year.
This overall decline in car sales affected the entire automotive sector, with a 76 percent drop in total sales to 31,602 units during the January to July period of 2023, as opposed to the 129,784 units sold during the same period in the previous year.
Analysts from the research firm attribute this downward spiral in car sales to multiple factors. The ongoing shortage of imported raw materials, stemming from previously imposed import restrictions by the authorities, has hampered production.
Additionally, the mounting inflationary pressures have resulted in a decreased demand for cars with engine capacities below 1000CC, exacerbating the situation. The Pakistani auto industry will need to closely monitor these developments and explore potential strategies to reverse this trend, ensuring stability and growth in the market.
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