Plunge 34% compared to the previous year
Pakistan’s auto industry struggled to maintain its sales during the Covid-19 pandemic as the number of cars sold in the country dropped to an 11-year low.
The industry sold 124,000 cars during the year 2020, according to data shared by the Pakistan Automotive Manufacturers Association. It was 34% lower than the previous year.
The last time the industry sold cars below this level was in 2009. The number of cars sold during the year was recorded at 107,800 during the Great Recession which made many countries struggle financially.
The highest number of car sales were recorded during 2018 when 255,000 vehicles were sold across Pakistan.
“The Covid-19 pandemic is the biggest reason for the low car sales in 2020,” Senior Research Analyst Ahmed Lakhani said. “Moreover, Kia also has a sizeable market share of around 10,000 to 15,000 cars but it doesn’t share its data anywhere. So, it is also making the data appear more dismal.”
The IM Securities Research expects a recovery in sales from January 2021 due to increased auto-financing, the brokerage firm said in its report.
“In this backdrop, newer models such as a Honda City, Kia Sorento and Hyundai Elantra could attract consumer interest,” the report read. “The launch of the Changan Alsvin sedan may keep sales of the incumbents in check, in our view.”