In H1 FY 2022-23, the sales of cars with 1,000cc or smaller engines declined by 28.54% on an annual basis.
Citing data from Pakistan Automotive Manufacturers Association (PAMA), a report from the Associated Press of Pakistan (APP) states that the sales of 1,000cc vehicles were recorded at 30,050 units from July to December 2022, which is 28.54% less than the same period of the previous fiscal year.
In H1 FY 2021-22, carmakers sold 38,629 cars with 1000cc or smaller engines. However, this year, the economic meltdown, production and logistics hiccups, and price hikes took a toll on car demand.
A New Wave of Price Hikes
January 26, 2023, will be remembered as a dark day in Pakistan’s history for recording the biggest local currency depreciation of all time in a single day.
When the day started, the dollar rate was Rs. 230. However, later that same day, it fell by Rs. 25, coming in at Rs. 255. This has sparked rumors about another devastating wave of car price hikes.
Earlier, Toyota Indus Motor Company (IMC) and Sazgar Engineering Works Limited (SEWL) increased the prices of their cars, possibly sparking the current wave of price hikes.
On January 22 and 23, 2023, Honda Atlas Cars Limited and Pak Suzuki Motor Company (PSMC) followed suit with a price hike of their own. After the recent dollar rate hike, the remaining car companies may announce their price hikes at any moment.
