Vehicle sales have fallen in August 2022 due to production cuts from major automakers, record inflation, and massive price hikes.
The latest data from Pakistan Automotive Manufacturers Association (PAMA) suggests that carmakers (association members only) collectively sold 11,645 vehicles last month, witnessing a month-over-month (MoM) decline of 2%, and a sizeable year-over-year (YoY) decline of a massive 46%.
Toyota Indus Motor Company (IMC) sold 3,876 cars, reporting a 63% MoM increase in sales. Honda Atlas Cars Limited (HACL) sold just 1,809 cars with a 44% MoM decline, while Pak Suzuki Motor Company (PSMC) sold 3,954 cars, observing a massive 67% MoM decline in sales.
Hyundai Nishat Motors Private Limited (HNMPL), on the other hand, made a strong comeback by selling 1,929 units, recording an 860% percent MoM increase in sales. Tucson remained the company’s best seller.
The monthly sales of some popular cars are as follows:
|Passenger Vehicle Sales
|Passenger Vehicles||Units Sold in July 2022||Units Sold in August 2022||Month on Month % Difference|
The inflationary pressures and import hurdles are a continuous bother for the carmakers. Companies have observed massive production cuts, which may cause sales to fall further in the coming months.
According to details, the production figures are as follows:
|Carmakers||Production in July||Production in August||Percentage Change|
The automakers blame the new mechanism enacted by the State Bank of Pakistan (SBP) for the decline, which requires approval for CKD import clearance. Toyota Indus Motor Company (IMC) and Pak Suzuki Motor Company (PSMC) issued notifications of production halts in September as well.
Considering these factors, the Pakistani auto sector is in for an extended dry spell.