ISLAMABAD: In August 2023, automobile sales experienced a remarkable surge to reach 7,579 units, marking an astonishing 49% month-on-month (MoM) increase. However, when comparing to the previous year, vehicle sales dropped by 36% on a year-on-year (YoY) basis.
The Pakistan Automobile Manufacturers Association (PAMA) has released data indicating a 47% decrease in car sales during the first two months (July-August) of the current financial year compared to the same period last year, with total sales reaching 12,671 units.
Muhammad Abrar Polani, an auto analyst at Arif Habib Limited, attributed this year-on-year decline in vehicle sales to rising car prices, costly auto financing, and the constrained purchasing ability of consumers in his report.
Polani said, “Car sales have increased MoM. But the YoY slowdown is the result of expensive auto financing. Besides, automakers have jacked up prices significantly that kept consumers at bay.”
However, he highlighted that the significant improvement in sales resulted from the removal of import restrictions during July-August 2023.Consequently, “automobile sales reached their highest point since March 2023.”
Additionally, he pointed out that in response to inflationary pressures, consumers shifted their preferences towards small cars with engine capacities below 1,000cc, leading to a remarkable 85% month-on-month increase in the sales of vehicles falling into that category.
Auto Sales in August 2023: Highlights by Company
When looking at company-specific data, Indus Motor reported a 13% month-on-month increase in sales, with 1,548 units sold in August 2023.
Pak Suzuki Motor Company played a significant role in the month-on-month sales growth, experiencing a substantial 75% increase. In August 2023, they sold 4,268 units, with 2,769 units of Alto sold, a 92% increase from July.
Honda Atlas Cars saw a month-on-month surge of 36% in sales, with a total of 674 units sold.
Mashood Khan, an expert in the auto sector, emphasized the necessity of government, industry associations, and other stakeholders collaborating to formulate effective policies and strategies for a swift recovery of the auto sector.
“There is a need to introduce targeted stimulus packages for the auto industry to provide financial relief, promote local production and encourage consumer spending.”
