Pakistan’s car sales (PAMA members) fell by 80 percent year on year in May 2023 due to non-production days, increased car prices, and a drop in purchasing power. However, sales climbed month over month. A number of car manufacturers have announced to stop manufacturing in Pakistan for the mean time amid economic stability.
According to Arif Habib Research, Pakistan’s monthly volumetric sales bounce was mostly led by stronger sales of Paks Suzuki Motor Company (PSMC), which increased by 101 percent. A YoY drop, on the other hand, can be attributed to the negative impact of growing inflation on consumer affordability.
“Additionally, unplanned plant shutdowns caused by SBP (State Bank of Pakistan) import restrictions continue to harm overall automobile production and supply,” it said.
“Notably, HCAR’s (Honda Atlas Cars) manufacturing plant was closed for half of May.” Furthermore, we expect automotive sales to remain challenging during the current calendar year.”
According to figures supplied by the Pakistan Automotive Manufacturers Association (PAMA), passenger car sales in May 2023 fell by 80% to 3,934 units, compared to 19,395 units in May 2022. In the first 11 months of FY23, 92,554 units were sold, a decrease of 56% from the 210,633 units sold in the same period in FY22.
May 2023 sales increased by 38% month on month to 3,934 units, compared to 2,844 units sold in April 2023. During this time, sales of 1300cc and larger cars fell by 85 percent to 1,445 units. In May 2023, 1000cc cars sold 430 units (282 units of Suzuki Cultus and 148 units of Suzuki WagonR), compared to 3,528 units in the same month the previous year.
Below 1000cc vehicles sold 2,059 units, a 67 percent decrease from 6,184 units sold last year. Suzuki’s Alto sold 1,902 units in May 2023, up from 5,461 in May 2022.
Buses and trucks fell to 153 units in May 2023, down from 486 units the previous month. Jeeps and pick-ups were sold in 1,356 units, down from 3,498 units in the same period last year.