Sales of locally produced cars, especially of smaller engine capacities, have taken a nosedive in November 2018.
Cars below of under 1,000cc saw a major decline in sales last month mainly due to a hike in prices and government’s crackdown against non-filers.
Country’s deteriorating economic situation is also considered to be one of the reasons behind this dip in sales.
As per Pakistan Automotive Manufacturers Association (PAMA) report, sales of 800cc to 1000cc cars dropped by as much as 25% year-over-year and 37% on a month-on-month basis in November.
The overall automobile sales for the month dropped to 17,442 units which is a 17% drop year-on-year and a 30% drop on a month-over-month basis as compared to October’s sale of 24.850 units.
Market experts believe that the fluctuating value of the dollar and the uncertain economic situation in the country on top of the hike in the interest rate from the SBP have clubbed together to discourage the buyers.
Here is a breakdown of sales for major automotive companies:
Pak Suzuki Motors
Pak Suzuki, the largest seller of low-end cars, registered a 36.3% decline in sales last month with 13,346 units.
The company which caters 50% of the country’s market saw a drop to 8,511 units in November against 11,285 units in the corresponding period of last year.
- Swift shows a 7% decline on the month-on-month basis sales with 444 units sold in November as compared to 517 in October.
- Mehran also saw a 44% decline with a sale of 2199 units in November ’18, as compared to last year.
- Bolan’s year-on-year sales also decreased by 39% in November. The company sold 1051 units of Bolan last month, whereas it sold 1709 units in November last year.
- Sales of Ravi have also gone down by 28%, as Pak Suzuki only managed to sell 1286 units of Ravi as compared to 1797 units last year.
- Cultus recorded 13% growth in yearly sales with 1545 units in November this year as compared to 1363 in November 2017.
Indus Motors Toyota
Indus Motors also recorded a year-over-year decline in sales of 7% to 5,479 units and 15% drop on a monthly basis.
- Toyota sold 4,957 units of its Corolla model last month. The number increased from 4,537 units in the month of October.
- Toyota sold another 286 units of its Hilux model as well, however, the sales were down 46% from 568 as of the month of October.
- The company sold 236 units of Fortuner in November and saw a minor, 15% decline from 258 units that it sold in October.
Honda was no exception either:
- Honda sold 3152 units of its City and Civic models in November and recorded an increase from 3208 units that it sold in October.
- The company sold 300 units of BR-V model last month as compared to 523 units sold in October.
- The price hike in October caused a major decline in motorcycle sales as well. The company sold just 90,016 units in the month as compared to its October’s sales of 107669 units.
Truck Sales have also dropped by almost half in one month due to the same reasons.
Massey Ferguson sold just 1915 units in November as compared to the 3816 units that it sold in October.
Fiat sold 1750 units of tractors last month as compared to the 2515 units that the company managed to sell a month before that.
Overall, a total of 3750 tractor units were sold in November, down from 6348 units in October.