Sedans Had The Highest Sales in Pakistan Despite Massive Price Hikes

The government of Pakistan has granted greenfield status to over 21 new automakers to manufacture vehicles under the Automotive Development Policy (ADP) 2016-21.

The arrival of new automakers brought about the emergence of new car segments, shifting the car industry’s landscape. In the third quarter of the 2022 fiscal year (Q3FY2022), the market share of all passenger vehicle segments grew by 76 percent.

According to the data shared by Toyota Indus Motor Company (IMC) during the quarterly performance review meeting, here’s a segment-wise breakdown of a Year-over-Year (YOY) change in automotive market share for Q3FY2022:

Segment-Wise Breakdown

Segments Categories Units Sold Q3FY2021 Units Sold Q3FY2022 YOY Percentage Change in Market Share
Economy Cars Total 18,681 36,036 93%
New 17,350 33,008 90%
Used 1,331 3,028 127%
Subcompact Hatchbacks Total 19,762 36,018 82%
New 15,769 30,617 94%
Used 3,993 5,401 35%
Sedans Total 34,084 54,495 60%
New 33,237 53,611 61%
Used 847 784 -7%
SUVs Total 14,665 25,643 75%
New 13,336 22,840 71%
Used 1,329 2,803 111%
Luxury Vehicles Total 486 1,956 302%
New 436 1,781 308%
Used 50 175 250%

Data Courtesy: Toyota Indus Motor Company

CBU and CKD Breakdown

Categories Units Sold Q3FY2021 Units Sold Q3FY2022 YOY Percentage Change in Market Share
New CBUs 1,139 7,497 558%
Used CBUs 9,232 15,436 67%
New CKDs 97,178 166,331 71%

Data Courtesy: Toyota Indus Motor Company

Note: The data for used CKDs had not been presented separately.

Key Takeaways

As can be seen above, all segments have shown promising growth in the recent quarter. The sales of new cars are particularly much higher than used cars, which is a good sign.

Furthermore, while all other car segments have observed a greater growth by percentage, the sedan segment remains the most dominant in Pakistan by sheer volume. Also, the popularity of SUVs has been further cemented by their sales figures, which are quite close to new hatchbacks.

CBU sales have seen a tremendous rise in sales in the recent quarter compared to the same time last year, which is mostly due to the massive influx of imported MG vehicles in Pakistan.

Regardless of the recent tax increments and huge price hikes, the demand for cars is on a constant rise. However, industry experts suggest that more price hikes are imminent, and will likely impact car demand in Pakistan significantly in the coming days.



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