Karachi October 12 2022: As per the latest data shared by Pakistan Automotive Manufacturers Association (PAMA), car sales decreased by 51 percent year on year to 9,213 units during the first month of September 2022.
Car sales decline substantially as skyrocketing car prices suppressed demand amid higher interest rates and import restrictions hurt production even before the full impact of the devastating floods.
The State Bank of Pakistan (SBP) has introduced a mechanism for prior approval for import under HS code 8703 category (including CI(Ds) vide circular No.09 of 2022 dated May 20, 2022. These restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels.
As compared to the previous month, auto sales increased by 3 percent.
Pak Suzuki Chairman Kinjo said, ” Auto industry supports the government to overcome the foreign exchange crisis. However, due to such restrictions, limited imports are allowed resulting in shortages of material for production. Consequently, forced us to opt for temporary shut downs.”
Kinjo is optimistic that foreign exchange situation of the country will improve considering the positive developments with regards to external flows.
Ravi’s sales hit the most among Pak Suzuki variants by 74 percent year on year to 246 units from 933 units. While Bolan sales were down by 32 percent year on year to 609 units during September 2022 from 894 units. Sales of Alto also declined by 48 percent to 2,372 units compared to 4,540 units in September 2021. Overall sales of Pak Suzuki Motor decreased by 46 percent year on year to 6,006 units during September 2022.
Combined sales of Corolla and Yaris decreased by 63 percent year on year to 1,780 units during September 2022. Sales of Fortuner and Hilux also decreased by 42 percent year on year to 837 units. Overall sales of Indus Motor Company decreased by 58 percent year on year to 2,617 units.
Sales of Civic and City decreased by 64 percent year on year to 1,201 units when compared to the sales of September 2021. Honda sold 79 units of BRV during September 2022, which is down by 71 percent year on year. Overall sales of Honda Cars decreased by 65 percent year on year to 1,280 units.
Sales of Tucson increased the most by 15 percent year on year to 375 units among all variants sold in Pakistan when compared to the sales of September 2021. Hyundai sold 121 units of Porter during September 2022, which is lower by 13 percent year on year. Overall sales of Hyundai increased by 0.3 percent year on year to 967 units.
Recovery in automobile sales may be hurt by catastrophic floods that inundated about a third of the country in recent weeks, killing about 1,400 people and causing losses worth about $30 billion.