Car Industry Boasts Tremendous Growth as Suzuki, Honda, and Toyota Sales Rise

Despite inflation wreaking havoc across several industries, the demand for cars in Pakistan remains at an all-time high. The big three, in particular, have witnessed a monumental rise in car sales while Hyundai Nishat Motors Private Limited (HNMPL) has observed a slight decline.

According to a recent report from Pakistan Automotive Manufacturer’s Association (PAMA), the auto sector recorded a total of 27,131 car sales, recording a Month Over Month (MoM) increase of 25 percent and a Year Over Year (YoY) increase of 30 percent.

In February, Toyota Indus Motor Company (IMC) sold 7,068 units and recorded an MoM increase of 53 percent and a YoY increase of 6 percent in sales. Hyundai Nishat Motors Private Limited (HNMP) sold 1,307 cars in the same period, observing an MoM decrease of 11 percent.

HACL sold 3,651 cars, recording an MoM increase of 33 percent, and a YoY increase of 16 percent, while PSMC sold 15,011 units and recorded an MoM increase of 18 percent and a YoY increase of 48 percent.

The sales figures of some of the most popular vehicles in Pakistan are as follows:

Passenger Vehicle Sales (PAMA Members Only)
Passenger Vehicles Units Sold in February 2022 Units Sold in March 2022 Month on Month %age Difference
PSMC
Cultus 1,637 306 -82%
Alto 7,175 9,814 37%
Wagon R 1,646 2,104 28%
Bolan 1,070 1,295 21%
Swift N/a N/a n/a
Toyota IMC
Corolla 2,203 3,490 58%
Yaris 1,294 1,905 47%
Fortuner 333 736 121%
Hilux 507 1,134 124%
Honda Atlas
City & Civic 2,286 3,278 43%
BR-V 461 373 -19%
Hyundai Nishat
Tucson 774 576 -26%
Sonata 226 250 11%
Elantra 312 357 14%

Market Condition

Car sales in recent months have remained high despite prices increases, tax rate hikes, and restrictions on car financing by the State Bank of Pakistan (SBP). However, auto industry analysts reckon the sales will likely plummet in the next fiscal year.

An analyst from Ismail Iqbal Securities (IIS) Muqeet Rehman stated that:

Looking at the currency devaluation, further price hikes cannot be ruled out. Continuous price hikes coupled with higher interest rates and limitations on auto financing would likely hurt auto demand in the next fiscal year.

The global supply chain and economic disruption are taking a toll on the Pakistani car industry, which is transferring that burden onto the public. Time will tell if that burden will impact the car demand.



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