The wave of inflation that struck in 2023 severely reduced individuals’ buying power and therefore decreased the amount of items sold on the market. Giants in the auto industry like Toyota, Suzuki, and Honda were not exempt from the economic downturn, which led to the temporary shutdown of manufacturing facilities.
The harsh realities that these businesses must contend with are shown by data made public by the Pakistan Automotive Manufacturers Association. As an example, Honda's sales fell dramatically, from a record 28,928 automobiles in 2022 to 9,760 vehicles in 2023—a reduction of an astounding 66.26%.
Suzuki also had a steep loss in sales, falling from 114,605 vehicles in 2022 to 35,253 vehicles in 2023—a notable decrease of 69.24%. Notably, sales of the well-known Suzuki Alto dropped from 59,526 to 19,071 units, indicating the burden on the economy.
Toyota had a decline in sales as well, losing 66.81% more in 2023 than in 2022. From January to November of 2023, the business was only able to sell 19,320 automobiles, a significant drop from the 51,945 vehicles sold during the same time in 2022.
These massive automakers are facing difficulties as a result of the combined effects of inflation, indicating the necessity for flexible approaches to deal with the shifting economic environment.
