Car demand in Pakistan is showing no signs of slowdown despite record inflation and massive taxes. Despite grim foresight from analysts and experts, car companies have observed record-breaking sales in June 2022.
Although the Pakistan Automotive Manufacturer’s Association (PAMA) is yet to reveal the official figures, reliable sources have reported that all PAMA members collectively sold 28,493 vehicles last month.
It adds that Toyota Indus Motor Company (IMC) sold 6,309 cars, reporting a 7 percent Month On Month (MoM) increase in sales. Honda Atlas Cars Limited (HACL) sold 3,903 cars and recorded a 34 percent MoM increase, while Pak Suzuki Motor Company (PSMC) sold 16,009 cars with a 31 percent increase in sales.
Hyundai Nishat Motors Private Limited (HNMPL) sold 1,871 units, recording a 9 percent MoM increase, while a report from autojournal.pk also highlights that Kia Lucky Motor Corporation (KLMC) sold over 2,100 vehicles, showing a 43 percent MoM increase in sales.
The monthly sales of some popular cars are as follows:
|Passenger Vehicle Sales
|Passenger Vehicles||Units Sold in May 2022||Units Sold in June 2022||Month on Month %age Difference|
*Kia Sales By Autojournal.pk
Automakers and analysts predicted a slump in sales due to price hikes, citing rising shipping costs, raw material costs, fuel costs, and local currency depreciation.
Some experts reckon that the sales will remain strong up until Q3 2022. One of the reasons is that certain parties make good business out of buying cars at ongoing prices and selling them at a higher price after the hike is announced.
The second reason is the pre-stacked orders that are awaiting invoice generation and delivery. They say that it would be interesting to see how the situation plays out in Q4 2022 or Q1 2023, as price hikes and increased taxes begin hurting the demand.