Pakistan’s car sales (including Non-PAMA members) increased by 9% month-on-month to around 10,000 units in September 2023, according to a report by Topline Research. However, the sales were still down by 23% year-on-year, reflecting the challenges faced by the auto sector amid high prices, expensive financing, and low consumer demand.
The report attributed the monthly increase in car sales to the easing of CKD import issues, which had hampered the production and delivery of cars in the previous months. However, the report also noted that the car prices had escalated significantly due to the depreciation of the Pakistani rupee, higher taxes, and inflationary pressures.
The report also provided a breakdown of the sales performance of different car manufacturers and models. Honda Atlas Car (HCAR) recorded the highest increase of 99% MoM, reaching 1,342 units in September 2023, primarily due to the low base of the previous month when the company sold only 674 units. Pak Suzuki (PSMC) was the only one that recorded a decline of 1% MoM to 4,234 units in September 2023 led by 8% MoM decline in sales of Alto. Hyundai sales were up 5% MoM where Porter sales were up 48% MoM to 177 units in September 2023. Indus Motors (INDU) sales were up 3% MoM led by increase in sales of Fortuner and Hilux by 27% MoM.
The report also covered the sales of other vehicles such as tractors, trucks, buses, and bikes. It highlighted that tractor sales were up 64% YoY in the first quarter of FY24 due to low base of last year amid floods. Bike sales were up 8% YoY in September 2023 due to higher demand from rural areas and lower-income segments.
The report concluded that the outlook for the auto sector remains uncertain as the country faces economic challenges, political instability, and a possible fourth wave of COVID-19. It recommended that the government should provide relief measures for the auto sector such as reducing taxes, facilitating imports, and lowering interest rates. It also suggested that the car manufacturers should focus on improving their product quality, customer service, and innovation to attract and retain customers.