Honda and Suzuki Observe Massive Decline in Sales in August 2022

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
Cultus 661 441 -38%
Alto 4,618 2,293 -50%
Wagon R 282 365 29%
Bolan 353 227 -36%
Swift 321 532 66%
Toyota IMC
Corolla 1,087 1,595 47%
Yaris 647 1,306 102%
Fortuner 347 636 83%
Hilux 294 339 15%
Honda Atlas
Civic 422 606 43%
City 1,986 830 -58%
BR-V 482 373 -23%
Hyundai Nishat
Tucson 104 985 847%
Elantra 0 581 N/A
Sonata 0 234 N/A

Production Issues

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
Toyota Indus 3,582 3,089 -14%
Honda Atlas 2,506 2,020 -19%
Pak Suzuki 9,881 5,757 -42%

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.

  • A major part of this decline in sales is due to the suneel munj’s advice to people to not buy any car for 2-3 months and the prices will come down gradually.

  • Allah ka shukr hay kuchh sakoon milaya gaa….warnaa jis tarhaa petrol honay key bawajood en luxury cars ki waja sey bhookay ho rahay Hain aik din hamaray mulk ney bi es Shok ki waja sey kangaal ho Jana hay…” Logon ki bhook ka ilaaj garrian yahaan sey nikaal aur motorways khatm kar key zaraat Paal”…

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