The automobile sector in Pakistan is confronted with several obstacles, such as dwindling consumer demand, rising sticker costs, elevated taxes, and costly vehicle finance.
Only over 6,000 automobiles were sold in September in Pakistan, a neighboring country, indicating a continued fall in car sales.
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Car sales figures for October (sales from the month of September) from the Pakistan Automotive Manufacturers Association (PAMA) show that just 6200 units were sold in Pakistan, down from 8400 units in September which are a reflection of August’s sales.
The entire October figure of 7,000, even when non-PAMA members are taken into account, stands in stark contrast to September’s 9,500 and October 2022’s 15,000 figures.
The automobile sector in Pakistan has to contend with issues such as dwindling consumer demand, rising sticker costs as a result of exchange rate depreciation, high taxes, and costly vehicle finance.
According to PAMA data, sales for the first four months of fiscal year 2023–24 fell significantly by 44%, from 48,573 units to 27,163 units, in comparison to the prior period. The market is dominated by big names like Hyundai, Kia, Toyota, Pak Suzuki, Atlas Honda, and Pak Suzuki, but there is little local manufacture.
Motorcycle sales, a sign of declining buying power, dropped by 10% in the first four months of the current fiscal year, adding to the industry’s general difficulties.
At the same time in India, the Federation of automotive Dealers Associations (FADA) reports that during the festival season, demand for cars across all vehicle classes spiked in September, resulting in a spectacular 20% increase in automotive retail sales in India. From 15,63,735 units in September 2022 to 18,82,071 units overall, there was a significant rise in car registrations.
