Karachi, March 12, 2024 – Pakistan has experienced a significant downturn in car sales during the first eight months (July – February) of the current fiscal year 2023-24, with a staggering 41 percent drop compared to the same period in the previous fiscal year.
According to the latest data from the Pakistan Automotive Manufacturers Association (PAMA), car sales stood at 46,417 units during the initial eight months of the current fiscal year, down from 78,575 units recorded during the corresponding months of the previous fiscal year. This decline reflects a challenging economic environment and shifting consumer behaviors in the country.
However, amidst this overall decline, there is a glimmer of hope as February 2024 witnessed a notable year-on-year increase in car sales. The month saw a remarkable surge of 118 percent, with sales reaching 7,953 vehicles compared to 3,642 units in February of the preceding year. Furthermore, February 2024 also exhibited a marginal 2 percent increase in sales compared to January 2024.
Breaking down the data for February 2024, sales of 1300 cc and above cars saw a significant uptick, reaching 3,941 units, marking a 39 percent increase from the same period last year. Similarly, 1,000 cc cars also experienced a surge in sales, with 456 units sold, primarily driven by models such as Suzuki Cultus and Suzuki WagonR, compared to 165 units in February of the previous year. Additionally, sales of vehicles below 1,000 cc skyrocketed to 3,556 units, showing a substantial 4.6-fold increase from the previous year, with Suzuki Alto leading the pack at 3,373 units.
However, the picture wasn’t entirely positive across all vehicle categories. Sales of buses and trucks witnessed a decline, dropping to 353 units from 657 units recorded in February of the preceding year. Similarly, the sale of jeeps and pick-ups also experienced a downturn, with 1,756 units sold compared to 2,544 units during the same period last year. On the other hand, sales of tractors saw a slight increase, rising to 3,366 units from 3,330 units in February 2023.
The fluctuating trends in car sales reflect broader economic dynamics and consumer sentiments prevailing in Pakistan. Factors such as inflation, currency devaluation, and changes in government policies have influenced purchasing decisions, contributing to the observed fluctuations in the automotive market.
Industry analysts suggest that while the recent surge in car sales is encouraging, sustained growth in the sector will depend on various factors, including stability in economic conditions, consumer confidence, and the implementation of supportive policies by the government to stimulate investment and domestic consumption.
As Pakistan navigates through these challenges, stakeholders in the automotive industry are closely monitoring market dynamics and adapting strategies to navigate the evolving landscape, with the hope of revitalizing the sector and driving sustainable growth in the long run.
