In August 2023, automobile sales in Pakistan experienced a remarkable surge, reaching a total of 7,579 units, marking a staggering 49% month-on-month increase.
However, when compared to the same period last year, the year-on-year sales showed a notable decline of 36%. Data provided by the Pakistan Automobile Manufacturers Association (PAMA) revealed that vehicle sales during the first two months of the current financial year (July-August) witnessed a 47% decrease compared to the previous year, totaling 12,671 units.
Muhammad Abrar Polani, an auto analyst at Arif Habib Limited, attributed this decline in year-on-year sales to several factors, including rising car prices, expensive auto financing options, and the limited purchasing power of consumers.
Polani highlighted that although there was a month-on-month increase in car sales, the year-on-year slowdown was primarily a result of costly auto financing and significant price hikes imposed by automakers, which deterred potential buyers.
However, Polani noted that the noteworthy improvement in sales was driven by the elimination of import restrictions in July and August 2023, resulting in the highest automobile sales figures since March 2023.
Additionally, consumers responded to inflationary pressures by shifting their preferences towards smaller vehicles with engine capacities below 1,000cc, leading to an impressive 85% month-on-month increase in sales within this category.
Analyzing sales data by company, Indus Motor reported the sale of 1,548 units in August 2023, reflecting a 13% increase compared to the previous month. Pak Suzuki Motor Company contributed significantly to the month-on-month sales boost, recording a substantial rise of 75%, with total sales of 4,268 units in August.
A standout performer within this was the Suzuki Alto, with sales surging by 92% compared to July. Honda Atlas Cars also experienced a month-on-month surge of 36%, with the sale of 674 units in August.