Pakistan Car Sales in May 2023 Witness Mixed Performance

Our Correspondent

Pakistan Car Sales in May 2023 have witnessed mixed performance with overall car sales showing a significant decline compared to the previous year but a slight improvement on a month-on-month basis.

According to the Pakistan Automotive Manufacturers Association (PAMA), car sales reached 5,300 units, marking a 19% increase compared to April 2023, but a substantial 77% decrease compared to May 2022.

Notably, excluding the members of PAMA, car sales from non-PAMA companies totaled approximately 6,200 units, showing an 18% month-on-month increase.

However, apart from Pak Suzuki (PSMC), all other car manufacturers experienced a decline in sales due to the unavailability of Completely Knocked Down (CKD) parts.Car Prices in Pakistan 2023: Everything You Need to Know

The cumulative sales for the first eleven months of the fiscal year 2023 (11MFY23) stood at 120,158 units, representing a significant 52% year-on-year decrease. Pakistan Car Sales in November 2022 up 35%

This downward trend can be attributed to several factors, including the scarcity of CKD parts, rising car prices, expensive auto financing, and the low purchasing power of consumers.

Pak Suzuki (PSMC) was the exception to the overall decline, as it recorded a remarkable 101% month-on-month growth in May 2023, with sales reaching 2,958 units.

This surge was primarily driven by increased sales of the Alto, which saw a 132% month-on-month increase, along with the Swift and Cultus models experiencing respective jumps of 129% and 59% compared to the previous month.

The significant improvement in PSMC’s sales can be attributed to a low sales base in the previous month and the availability of CKD parts.

On the other hand, Honda Atlas Car (HCAR) witnessed the sharpest decline, with sales dropping by 58% month-on-month to a mere 87 units.

This decline can be attributed to the same factors affecting the overall industry. Similarly, Hyundai sales also suffered, with a 31% month-on-month decline.

The Tuscon model saw a 38% decrease, while the Elantra witnessed a 42% decline in sales for May 2023.

Indus Motors (INDU) also experienced a decline of 12% month-on-month, selling 1,718 units compared to the 1,948 units sold in April 2023.

Shifting the focus to the tractor industry, Millat Tractors (MTL) showed a 25% month-on-month increase in sales, reaching 1,505 units in May 2023. In contrast, Al-Ghazi Tractors (AGTL) reported flat sales of 2,003 units for the same period.

Overall, tractor industry sales for the 11MFY23 period amounted to 27,952 units, reflecting a 46% year-on-year decline due to factors such as floods, plant shutdowns, reduced consumer purchasing power, and higher prices.

Meanwhile, the motorcycle sector demonstrated a mixed performance, with an 18% month-on-month increase but a 35% year-on-year decline in sales for May 2023.

Atlas Honda (ATLH) reported sales of 87,000 units, showing a 19% increase compared to the previous month but a 24% decrease compared to the same period last year.

Trucks and bus sales remained relatively stable, with a 1% month-on-month increase. However, there was a significant 69% year-on-year decline, as sales in May 2023 amounted to only 153 units.

This brought the total sales for the 11MFY23 period to 3,687 units, reflecting a 38% year-on-year decrease. The decline in transportation activity and an overall economic slowdown were the primary contributing factors to this drop.

The automotive industry in Pakistan continues to face challenges, including supply chain disruptions and economic constraints.

The industry players are closely monitoring the market dynamics and consumer preferences while working towards maintaining a balance between quality, pricing, and availability of vehicles to revive the sector.