The car industry’s bleak outlook persists as Pakistan enters hyperinflation following the start of the new fiscal year.
According to the most recent data from the Pakistan Automotive Manufacturers Association (PAMA), carmakers (association members only) sold just 5,290 vehicles in May 2023, representing a 19% month-on-month (MoM) increase and a 77% year-on-year (YoY) decrease.
Honda’s Year Sales
Toyota Indus Motor Company (IMC) sold 1,718 vehicles, representing a 12% increase in sales year on year. Honda Atlas Cars Limited (HACL) sold 87 vehicles, a 58% decrease from the previous year. Pak Suzuki Motor Company (PSMC) sold a respectable 2,958 vehicles, representing a 101% increase in monthly sales.
Hyundai Nishat Motors Private Limited (HNMPL) sold 503 vehicles last month, a 31% decrease from the previous month. Despite a significant drop in individual sales, Tucson remained the company’s frontrunner.
The following are the sales figures for some popular automobiles:
| Passenger Vehicle Sales | |||
| Passenger Vehicles | Units Sold in April 2023 | Units Sold in May 2023 | Month-on-Month % Difference |
| PSMC | |||
| Cultus | 177 | 282 | 59% |
| Alto | 820 | 1,902 | 132% |
| Wagon R | 99 | 148 | 49% |
| Bolan | 163 | 157 | -4% |
| Swift | 145 | 332 | 129% |
| Toyota IMC | |||
| Corolla and Yaris | 1,007 | 853 | -15% |
| Fortuner and Hilux | 941 | 865 | -8% |
| Honda Atlas | |||
| Civic and City | 159 | 56 | -65% |
| HR-V & BR-V | 48 | 31 | -35% |
| Hyundai Nishat | |||
| Tucson | 315 | 194 | -38% |
| Elantra | 119 | 69 | -42% |
| Sonata | 155 | 135 | -13% |
The automobile industry has had to raise prices due to currency instability and rising raw material costs. Furthermore, due to CKD kit import restrictions, automakers are barely able to continue operations.
For the time being, the government has decided not to raise taxes on new cars and CKD imports. This implies that future tax-related price increases are unlikely.
However, the lack of new incentives means that the situation will not improve. Given this forecast, the future of the automobile industry appears bleak.
To read our blog on “Honda’s profits fell 89% in fiscal year 23,” click here\