August 2022 saw a decline in vehicle sales as a result of significant automakers cutting back on output, record inflation, and steep price increases.
According to the most recent data from Pakistan Automotive Manufacturers Association (PAMA), automakers (association members only) together sold 11,645 automobiles last month, experiencing a significant 2% reduction month over month (MoM) and a staggering 46% decline year over year (YoY).
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Toyota Indus Motor Company (IMC) sold 3,876 cars, reporting a 63% MoM increase in sales. Honda Atlas Cars Limited (HACL) sold just 1,809 cars with a 44% MoM decline, while Pak Suzuki Motor Company (PSMC) sold 3,954 cars, observing a massive 67% MoM decline in sales.
On the other hand, Hyundai Nishat Motors Private Limited (HNMPL) made a great comeback by selling 1,929 units, achieving an increase in sales of 860% MoM. The top seller for the business is still Tucson.
The inflationary pressures and import hurdles are a continuous bother for the carmakers. Companies have observed massive production cuts, which may cause sales to fall further in the coming months.
The automakers blame the new mechanism enacted by the State Bank of Pakistan (SBP) for the decline, which requires approval for CKD import clearance. Toyota Indus Motor Company (IMC) and Pak Suzuki Motor Company (PSMC) issued notifications of production halts in September as well.
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Considering these factors, the Pakistani auto sector is in for an extended dry spell.
The recent price hikes have evidently started affecting car sales in Pakistan negatively. As per a recent report from Pakistan Automotive Manufacturer’s Association (PAMA), the auto sector recorded a total of 22,370 car sales in April, recording a Month Over Month (MoM) decline of 18 percent and a Year Over Year (YoY) increase of 30 percent.
In April, Toyota Indus Motor Company (IMC) sold 5,775 units and witnessed an MoM decrease of 18 percent and a YoY increase of 8 percent in sales. Hyundai Nishat Motors Private Limited (HNMP) sold 1,287 cars in the same period, observing a minor MoM decrease of 1 percent and a YoY increase of 44 percent.