Auto sales decline to lowest since May 2020

Auto sales decline to lowest since May 2020

Non-production days, long Eid ul Fitr holidays, and a decline in purchasing power have pushed the passenger car sales down by 85% year-on-year, The News reported Friday.

The data released by the Pakistan Automotive Manufacturers Association (PAMA) showed that passenger car sales fell to 2,844 units only against 18,626 units in April 2022. 

Cumulatively, in the first 10 months of the fiscal year 2022-23 (10MFY23), a total of 88,620 units were sold, down 54% against 191.238 units sold during the same period in the fiscal year 2021-22.

Arif Habib Limited attributed the decrease in sales to a decline in demand mainly on the back of massive hikes in interest rates, spiralling automobile prices, repeated plant shutdowns, escalating petroleum prices, and reduced consumer affordability.

On month-on-month bases, sales in April remained lower by 60.5% compared with the 7,201 units sold in March. During this period, sales of 1300cc and above cars were recorded at 1,585 units, down 83% compared with the same month of the previous year’s sales of 9,189 units.

In April, 1,000cc cars recorded sales of 276 units only, (177 units of Suzuki Cultus and 99 units of Suzuki WagonR) against 3,568 units in the same month last year.

Below 1,000cc vehicles recorded a sale of 983 units, lower by 83% against 5,869 units last year. Suzuki’s new Alto sold 820 units in April 2023, compared with 5,009 units in April 2022.