Pakistan’s auto sales of local assemblers dropped to a record low of 4,250 units in July 2023, according to provisional data from the Pakistan Automotive Manufacturers Association (PAMA). This represents a decline of 18% month-on-month and 63% year-on-year.
The slump in sales was attributed to the restrictions on imports and exchange loss risks amid pending LC payments that forced local assemblers to reduce operations. The cumulative car production of the sample companies in July 2023 was around 5,200 units, which is 14% lower than the previous month and 67% lower than the same month last year.
Company-wise data shows that Pakistan Suzuki (PSMC) witnessed a 20% decline in sales to 2,400 units, mainly due to a 25% reduction in sales of its flagship brand ALTO. Indus Motors (INDU), which assembles Toyota vehicles, also saw a 27% drop in sales to 1,350 units. On the other hand, Honda Atlas (HCAR) recorded a 63% increase in sales to 500 units, mainly driven by higher sales of HR-V.
The outlook for the auto sector remains bleak as the country faces economic challenges and the impact of the COVID-19 pandemic. However, some analysts believe that car sales may slightly improve following the relaxation on import restrictions. In the last two months (May-June 2023), CKD kit imports have shown a rising trend, which may improve the production levels of local car assemblers.