For the First Time in History No Car Sold in Pakistan for a Whole Month

The Pakistan Automotive Manufacturers Association (PAMA) has published the information relating to the production and sales of the automotive industry for the month of April and they make for shocking reading.

Not a single vehicle was produced or sold in the month of April, according to one official at PAMA “I have never witnessed zero production and sales in auto history for an entire month and the situation looks the same for May, which is alarming for the auto sector.” The overall car sales have fallen by 52% during the first 10 months of the current fiscal year, on a year-on-year basis to 86,330 units.

Honda has seen the worst slump with its car sales falling by a staggering 64% on a year-on-year basis in this time frame followed by Indus Motors who have seen their sales decline by 54% on a year-on-year basis. Pak Suzuki has seen its sales decline by 47% on a year-on-year basis.

More information can be seen in the table below:

Company April-20 April-19 YoY MoM 10MFY20 10MFY19 YoY
Pak Suzuki 0 10,789 -81% -50% 58,303 110,358 -47%
Toyota 0 5,738 -50% -43% 25,300 55,304 -54%
Honda 0 2,836 -59% -27% 14,061 38,724 -64%
Total 0 19,363 -100% -100% 97,664 204,386 -52%

 


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Why Have the Sales Gone Down to Zero?

There are two ways of looking at it, for a car to be counted as sold it needs to be delivered to the customer meaning that if a person has booked their car and even paid the full amount, it won’t be counted as sold unless it has been delivered.

There were cars that were supposed to be delivered this month but due to the federal and provincial governments imposing a lockdown, the car companies had to stop all operations, including deliveries.

This also transferred over to the production side and no car was produced this month but owing to the sowing season, tractors were allowed to be produced and sold. They were sold but they showed decreasing sales on a year-on-year basis while Atlas Honda was able to show over 2,000 bike sales but they also showed a decline on a year-on-year basis.

The other factor is that over the past year, there has been a steady decline in the sales of cars due to a number of factors such as the prevailing economic conditions, car makers increasing their prices and the government trying to increase the tax net. These two are the major factors behind the sales going down to zero.


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What’s Next for the Car Industry?

In one of our articles back in March, we talked about how the corona pandemic would impact the local auto industry. In the early days, the only thing that had been impacted was the launch of the Yaris but now there is a lot at stake.

According to PAMA officials, the sales and production figures for May could resemble the ones in April and this could have a devastating impact on the industry.

We have already seen multiple car makers such as Honda and Toyota increasing the prices of their cars due to the devaluation of the rupee. Now with no production or sales, they will have to increase their prices again which could potentially lead to further decrease in sales once the lockdown is over.

On the business side of things, they could be forced to lay-off part of their workforce to try and save costs. There were already talks about an industry-wide bailout and these numbers could only intensify the chances. One other thing that has gone largely unnoticed in all this is how this will impact the new entrants such as Hyundai, who have just launched their new cars and BAIC who were looking to enter the market later this year.

While both companies wouldn’t have the numbers to compete against the established carmakers in a world free from the coronavirus with sales and production already halted, it will be difficult to get going and this will impact other future potential investors.

There are testing times ahead for the local auto industry and it will be tough to navigate through these rough waters.

What do you think? Let us know in the comments below.


    • Imran Khan is the most honest and since leader of Pakistan. The problem lies with the people. Ordinary Pakistanis are corrupt and they don’t deserve a leader like Imran Khan. Please don’t blame Khan for the problems, lies and deceit of the people. He cannot change the corrupt people of Pakistan especially those who are living in Punjab.

      • Bhai wo walay Tiger bano jis ka tasawwur IK ne kiya hai. Na k baqi parties k paltu tigers ki tarah k. ess tarah ki shakhsiyat-parasti aur fazool tareefon se unhay bhi apni ghalti ka nahi pata lagay ga.
        System countries run krtay hain, log nahi. Log sirf ess system/machine a cog hotay hain. Govt bhi ap PTI k pas hai tou koi bahana nahi raha change na lanay ka. Hope k IK takes a strong stand against this corrupt system and changes it.

      • Imran is the most corrupt one. I will not call him a leader because he is not. He is a puppet. He is moraly corrupt as well.

    • yar corona ka doar hah, theek hah is liye sale nahi hui… jaha tak imran khan ki baat hah wo meri phuphi ka puttar nai hah, ird gird uske chawal baandar hi bethe huaye hain waziro k naam pay… aur jaha tak baqi pure logo ki baat hah, unke dour main metro bani thi wo bhi udhaar pay, aur wo naachtay aise thay k unho ne apni jaib se banwai hah.. healthcare pay kisi ne koi kaam nai kiya jiski wajah se yeh halaat hain aur abhi humne italy ko peeche chorna hah bohat jald (unka healthcare per capita american healthcare se bohat behtar tha)… So my message to imran khan supporters, jao containers ko chaato, my message to PMLN supporters, jao metro bus ko chaato and my message to PP supporters, jao bhutto ki qabar chaato…

    • All people like you are Nuts. Do you know that Government is getting 40% taxes on every car produced in Pakistan ( through import, VAT and Local GST). Government is losing billions now every month. Secondly more than 100,000 Pakistanis will lose jobs if this situation will continue.

      So are you ready for the loss of revenue and job loss right now?. I am sure that the naives like you are in top levels of PTI as well. They are happy at the destruction of Pakistan in every manner.

      “Also why no one is telling the government to reduce the local taxes and reduce the duty on Spare parts to reduce the prices”?.

      • Oh Bhai kya destruction of Pakistan laga rkhi hai. Ager purra mulk bankrupt bhi hojaye tou ghum nhi but jo perhly se hi morally bankrupt mulk ho uss ka aur kya bigarna hai abb.

  • Pakistan automotive industry is a Mafia and they extort these are not businesses that trade and for the sake of the benefit of business and masses. They are vultures which thrive on the remains of poor people after them getting crushed in the hands of economy.
    I wish they just vanish out and get replaced by imported vehicles.

    • mostly you’re right but they don’t exactly sell to poor people now do they? poor people can’t afford vehicles. i suppose it’s fashionable in pakistan to invoke poverty in every argument.

  • Unless and until the process of the cars are slashed down ? u can’t attract buyers similarly by lowering the prices the no of sales can b increased which is a best way to gain profit rather than by price hike

  • I think this experiment is totally failed assembling cars. People were optimistic but quality always very low with compare to india by all the asemblers. Ever increasibg prices etc. So Govt should activelt start facilitating and negotiating chinese and Turkish Car makers Buses Tractors and trucks. Pakistan is a big market and will coplaboration of china we could manage to launch several models of Pakistan itself and also we should negotiate with china that he shud manufacture and assemble vehicles in pakistan for export as well specially EVs.

  • dont blame the govt , the big fishes who own this sector are increasing their profits and not compromising on them any how, 1M last year on honda cars and then again 150K in the start of this month does not justify anything but their greed, i wish they go down to the same situation US OIL went last days.

    • Yes don’t blame the government. They are angels of the highest kind. Especially you cannot point finger at our PM and his team as these Khilafas cannot do anything wrong.

      But did you bother to ask the government that why Currency is depreciating so fast and why Government is charging too much Import levy and taxes on Car manufacturing. Do you know that if the car’s price is 20 Lakh then more than 7 Lakh is due to TAXES?. You can reduce the price just by reducing some taxes.

      So who is responsible for this mess of so high taxes on Car manufacturing?.

  • can someone explain to me, why they keep increasing prices? I know they couldnt care less about pakistani customers, but what is their logic?

    • Because they know they can getaway with it so why not make more money. Its the responsibility of state to keep the price and quality in check and protect its citizens rights.

      They may even get a bailout and still increase the prices.

    • If they dont have to invest in increasing capacity but can make same profit simply by increasing prices they are happy.
      The only way to stop them is for public to come to their senses and completely stop buying their cars. Then they will realise this cant go on. Because zero sales means zero profit even if potential profit per car is several million

      • Actually, Its very hard for people to shun buying cars because its something that a family needs in current times. What is the alternative if you don’t buy a car?

        The issue is with the GOVT polices towards auto industry and its consumers. Unless we push the GOVT to update its polices and ensure the check and balances for auto industry nothing would change. The very same auto manufacturers are producing fully loaded vehicles in other countries and are not able to abuse consumers compared to what they are doing in our country. They can’t do anything if GOVT keeps them in check.

  • شکر ہے اللہ کا کہ ان کی ایک گاڑی بھی نہیں بکی میں تو کہتا ہوں کہ سارا سارا سال ان لٹیروں کی کوئی گاڑی بھی نہ بکے ان ظالموں نے پاکستانیوں کا خون نچوڑ کہ رکھ دیا ہے ہر ماہ دیکھتے ہیں ہونڈا,سوزوکی,ٹیوٹا نے قیمتیں بڑھا دیں انڈیا میں ایسا کیوں نہیں ہوتا کی جب چاہے قیمتیں بڑھا دی جائں اوپر سے ان ظالموں لٹیروں کو کوئی پوچھنے والا بھی نہیں ہے!!!!!

  • A major hit “falaan” auto company, a major hit to “falaan” auto company.
    I don’t understand that why they take such huge financial hits but never drop their prices.. although, same companies have different response in other countries.

  • Alhamdullilah. The abnormal profits they literally charge from us against sub-standard, unsafe vehicles, may they go down the gutter! All of them!

  • Couldn’t happened to more deserving industry, very happy for this situation and hope more misery comes to these monopolists.

  • Due to Price :
    Agar Car Ki Price 5Lac K Andar Hoti To Log Car Shopping Karne Lag Jate :

    Think About It

  • Bubble prices should be busted.
    Tax relief should be given.
    Prices should be lowered 30-35%
    Nahi tu asi ki tesi… hogi…sab ki….
    Car prices should be decriciate like all over in the world …. hum koi chaand per tu rehtay nahi…
    Pakistan kay sb achy log…
    NCP cars uses kartay haan.
    Islamabad say 70km baad … mardan say ap start up jao sab NCP ha … Bhai.
    Pura Baluchistan NCP…cars.
    Hum kia Pagal haan. Islamabad-lahore-karachi… sab tax pay kar kay cars purchase kartay haan. Waaaa gi waaa.
    Koi haad hoti… Pagal pan ki…
    Agar hum waqi Azaad Country main rahtay haan tu rule ek hunaa chia.
    Ya tu sab NCP— Ya tu sab tax paid cars purchased Karain…

    Nahi tu koi Minister is system ko define karday…

  • They increased prices in April by upto 5 lacs.
    Government does nothing about price fixing.
    They had already factored in dollar at 168 back in 2019 when they raised prices by 50%. Then when dollar went down to 155, they still kept Increasing prices.
    No need to feel sorry for them.

  • If they dont have to invest in increasing capacity but can make same profit simply by increasing prices they are happy.
    The only way to stop them is for public to come to their senses and completely stop buying their cars. Then they will realise this cant go on. Because zero sales means zero profit even if potential profit per car is several million

  • If they dont have to invest in increasing capacity but can make same profit simply by increasing prices they are happy.
    The only way to stop them is for public to come to their senses and completely stop buying their cars. Then they will realise this cant go on. Because zero sales means zero profit even if potential profit per car is several million
    #PriceFixingAutoIndustryPak

  • Pakistan should focus on Electric Vehicles (EVs), as per Policy announced in Nov ’19 & its NOT worth wasting our energies with existing Japanese manufacturers

  • In my opinion Pakistan Automobile Cartel (not sector) deserve this. Unfortunately we Pakistanis do not have a sense of consumerism at all. We are happy to purchase a piece of junk with no technological upgrades and no safety standards in millions of Rupees. Maybe it is due to widespread corruption. Nobody bothers where they are wasting their easy money. Seriously people think about it and try to resist the temptation to buy these pieces of garbage which are sold to us in the name of a car

  • All the business have been badly affected by the Naya Pakistan polices. Automobile, Real starts have totally ended due to heavy taxes . When there will be no sale /purchase their will be no tax inputs . Government should make some real / workable policies so that public could do business and without business poverty will increase and resultantly taxes will declined .

  • The crisis in automative industry will further deepens due to high escalation of automotives . The rapid and illogical increase in prices of vehicles had resultantly brought the industry at the verge of collapse .The automotive needs to review their prices for their sustainability and existence or the day s not faraway that people will completely boycot of local manufacturers .

  • Pakistani automotive industry deserves even worst response. They are looting people by manufacturing sub standard vehicles with inflated prices. We must discourage purchase of these vehicles and zero selling stigma must continue: else they will not realise. They are a corrupt mafia and no one dares to raise voice against them even our government.

  • This is the time to completely overhaul the Automotive Industry with priority on quality and customer satisfaction. New car prices and its new genuine spare parts should be made less costly and a total ban on used / faulty parts sold as kabli in all over Pakistan.

  • Pakistani cars need to improve on quality and reduce prices to be considered worth buying

  • My dear, this is right time for the to bound them to transfer the technology and start complete manufacturing of cars in Pakistan. Further, it is a punishment for them as they were selling cars to pak public on so much high prices with nothing new in cars compare to imported cars. I would suggest to the public to stop buying further to bring them to the actual level.

    • My brother
      Technology transfer hogi tu buhat mehnat karni paray gi…
      Nasti haan sab. ….. aysay hi teek haan

  • Couldn’t happened to more deserving industry, very happy for this situation and hope more misery comes to these monopolists.

  • May 13, 2020
    شکر ہے اللہ کا کہ ان کی ایک گاڑی بھی نہیں بکی میں تو کہتا ہوں کہ سارا سارا سال ان لٹیروں کی کوئی گاڑی بھی نہ بکے ان ظالموں نے پاکستانیوں کا خون نچوڑ کہ رکھ دیا ہے ہر ماہ دیکھتے ہیں ہونڈا,سوزوکی,ٹیوٹا نے قیمتیں بڑھا دیں انڈیا میں ایسا کیوں نہیں ہوتا کی جب چاہے قیمتیں بڑھا دی جائں اوپر سے ان ظالموں لٹیروں کو کوئی پوچھنے والا بھی نہیں ہے

  • its just because of their own fault…keep in increasing the prices the fact dollar comes down after few days..new manufacturers will enter the market and honda and toyota will be out soon

  • Ministry of industries & production is to be equally blamed. Yeh saray … mill k humein pagal bana rahay (gorment k sath mill k)

  • The car market in pakistan isn’t regulated at all, people ask(quote the price) whatever they feel it is worth for, 10 – 20 years old cars are being sold for prices about one million Rupees and sometimes even two million. And the companies don’t provide the features for the asking price of the product but because some people don’t think before paying they think it’s okay to charge such huge amounts for new vehicles. Saying that dollar is going up or down doest matter much if they are selling scrap as featured cars to Pakistani consumers who don’t even understand about the cars (people measure CC to determine which car is better than another) and internationally these high end models in Pakistan are considered worthless by the people and these are only sold at such stupid high prices because our people don’t have the knowledge or the courage to understand that they are being robbed and a fool is made of them.
    MAY ALLAH HELP US ALL.

  • My dear sachay Pakistani .. bhaio.

    Please don’t purchase any car now .. very soon government is reducing taxes which will bring the car prices down. Like same the State Bank has reduced interest markup from 14 to 8%…

    Car prices will go down if they want to run the auto industry….only by reducing taxes.

    Please wait and see. All 3 auto motor so called gaints. In talk with government..

    Also used car market is crashed. No body is purchasing used car also.

    Car prices need to be depreciated like all over the world … every year atleast 10% for first 5 years.

    Ya tu galat baat ha 20lac ki car purchase karo 5 saal use karo phir 20lac ki sale kardo… haa na pagal log…

    Please try to understand car purchase karna har ek ki dream hoti ha.. let every one by happy.
    Hum itnay kud garz tu nahi husaktay..

    Allah hum Sab ko Aqel dai…. warna bewakoof tu hum hain hi..

  • Genuine, I pray and wish/hope that NO ONE buys any NEW car from these vendors.
    They increase price citing Dollar prices increase, but FORGET to lower the price when Dollar price Decreases.
    These corporations are hungry for profits, lets them starve to death because of this.
    Unless they give a GENUINE Relief to consumer, no one should buy a car.
    Car prices are going down across the globe, only in Pakistan we see price increase (citing FALSE inflation)
    All car’s should lower their prices by 30-35% plus the Government should give a tax relief of 10-15% so in total a 4 million car should be delivered to a consumer for around 2.5 million as that is the “Deserving” price/profit.

  • If sales are zero, then wouldn’t the year on year change between April 2019 and 2020 be -100% for all manufacturers in the table. Pls check.


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