The Pakistan Automotive Manufacturers Association (PAMA) reported a staggering 55.55% year-on-year plunge in passenger car sales during the first half of the fiscal year 2024.
The industry, grappling with high inflation, currency depreciation, low demand, and political uncertainty, faces additional hurdles due to recent supply chain disruptions.
The latest PAMA data highlights a significant drop in passenger car sales, totaling just 30,662 units in 1HFY24, compared to 68,912 units in the corresponding period of the previous fiscal year.
Despite a marginal 0.84% month-on-month increase in sales, the sector witnessed a drastic 64.33% year-on-year decline in comparison to December 2022 figures.
Production figures paint a similarly grim picture, with the total production of passenger cars plummeting by 56.87% year-on-year, standing at 30,786 units in 1HFY24.
The month of December saw a noteworthy 55.8% month-on-month increase in production, reaching 6,654 units. However, this still represents a substantial 51.64% year-on-year decline compared to December 2022.
The auto industry's struggles are exacerbated by a myriad of challenges, including a dollar shortage impacting the import of crucial car parts and raw materials. Some major players, such as Honda and Suzuki, have been forced to temporarily shut down production due to these supply chain disruptions.
While the State Bank of Pakistan (SBP) has eased import restrictions, the auto sector contends with persisting limitations on essential parts, severely hindering production capabilities. The industry faces tough competition for attention from the SBP, with sectors like medicine taking precedence.
Breaking down the sales data, the 'Below 1000cc' category emerged as the leader with 14,584 units sold in 1HFY24. Suzuki Alto dominated this segment with 13,405 units sold, followed by Suzuki Bolan at 1,179 units.
The '1300cc and Above' category saw 12,341 units sold, with Toyota (Corolla & Yaris) and Honda Cars (Civic & City) securing the highest sales.
In a parallel trend, truck sales witnessed a 50.22% year-on-year decrease, totaling 810 units in 1HFY24. Motorbike and three-wheeler sales also faced a 13.7% year-on-year dip, reaching 541,821 units, with Honda dominating both production and sales in the 2/3-wheeler segment at 470,706 and 470,399 units, respectively.
