Despite high demand in the market, the sale of local automobile companies saw a drastic decline of 12 percent in April as compared to March 2017.
According to statistics provided by the Pakistan Automotive Manufacturers Association (PAMA), the three major automobile companies have managed to sell 17,443 units in the month of April.
In April, Pak Suzuki Motors Ltd sold 9,171 units of different variants. It was followed by Indus Motor Company with 4,753 units and Honda Cars with 3,519 units.
The limited production capacity of cars ( with also includes replacement of new car models) affected the sales numbers negatively in April.
According to an analyst, the sales volumes of Cultus exhibited a decline owing to the car’s old model being phased out. However, sales of the company’s newly launched Cultus will pick up in the coming months.
Honda Civic 10th Generation from Honda was well-received by the customers in the local market, and is still in high demand.
Local automobile players have been witnessing production constraints vis-a-vis the increasing demand in the local market. The gap in the supplies and demands are huge in the local market due to limited production capacity of the three main players. Additionally, customers are made to wait for months to get their cars unless they pay extra own money for getting them on time.
It is forecast that the auto space will stay like this in the meantime, given the rising and improving purchasing power of buyers, who are already opting for auto finance solutions from banks. More demand for automobiles are also necessitated given the advancement of infrastructure projects underlying CPEC.