Pakistan’s automotive industry has suffered a significant downturn, with an 82 percent drop in sales of cars with 1000CC engine capacity from January to July 2023.
Pakistan’s automotive industry
This precipitous drop is a cause for concern in the country’s auto industry. According to industry data, only 3,900 units of 1000CC cars were sold in the first seven months of the current calendar year, compared to 21,098 units sold in the same period the previous year. This decline has had an effect on various segments of the automobile industry.
According to Arif Habib Research, sales of passenger cars with engine capacities of 1300CC and above have decreased by 72 percent. These sales fell to 16,340 units, down from 58,785 units sold in the same months last year.
Even sales of cars with engine capacities less than 1000CC were affected by the market downturn. The data shows a staggering 77 percent decrease in the review period to 11,362 units, compared to 49,901 units in the same period the previous year.
This overall decline in car sales affected the entire automotive sector, with total sales falling by 76 percent to 31,602 units from January to July 2023, compared to 129,784 units sold during the same period the previous year.
The research firm’s analysts attribute the downward trend in car sales to a variety of factors. The ongoing shortage of imported raw materials has hampered production due to previously imposed import restrictions by the authorities.
Furthermore, rising inflationary pressures have reduced demand for cars with engine capacities less than 1000CC, exacerbating the situation.
The Pakistani auto industry must closely monitor these developments and consider potential strategies to reverse this trend, ensuring market stability and growth.
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