Advertisement
Advertisement
Advertisement
Advertisement
A Closer Look at Pakistan’s Auto Industry in October 2023

A Closer Look at Pakistan’s Auto Industry in October 2023

A Closer Look at Pakistan’s Auto Industry in October 2023

Pakistan Auto Industry in October

Advertisement

In October 2023, the Pakistani automotive sector faced a significant downturn, marked by a substantial decline in passenger car sales and production. According to data released by the Pakistan Automotive Manufacturers Association (PAMA), the industry witnessed a 24.33% month-over-month (MoM) drop in car sales, totaling 4,850 units compared to the previous month’s 6,410 units. On a year-over-year (YoY) basis, the decline was even steeper, with a 56.42% decrease in contrast to the 11,129 cars sold in October 2022.

Sales and production trends:

The production of passenger cars followed a similar trajectory, experiencing a 38.25% MoM decrease in October 2023, with 3,868 units produced compared to 6,264 units in September 2023. On a YoY basis, production plummeted by 63.84%, falling from 10,697 units in October 2022. This downward trend in both sales and production indicates a challenging landscape for the Pakistani auto industry.

Year-to-Date Performance:

For the first four months of fiscal year 2023–24, car sales amounted to 20,871, reflecting a considerable YoY decrease of 47.4%. This stark decline in year-to-date performance underscores the persistent challenges faced by the sector, including high inflation, currency depreciation, low demand, and political uncertainty.

Advertisement

Supply chain disruptions:

Recent disruptions in the supply chain for critical components have compounded the challenges faced by the Pakistani auto industry. Despite the State Bank of Pakistan’s (SBP) relaxation of import restrictions, the sector remains a lower priority, and certain restrictions persist on essential parts, hindering production. Shortages in US dollars, particularly impacting the import of car parts, have led to temporary shutdowns of plants operated by major players such as Honda and Suzuki.

Exchange Rate Volatility:

The volatility in exchange rates adds an additional layer of complexity for autoassemblers in planning imports and managing costs. Fluctuations in the exchange rate can impact the affordability of imported components, affecting the overall production costs for car manufacturers.

Sales Breakdown:

PAMA’s data release highlighted that the ‘Below 1000cc’ category dominated sales, with the Suzuki Alto leading at 2,602 units. In the ‘1300cc and Above’ category, Toyota (Corolla & Yaris) took the lead with 796 units. Conversely, the ‘1000cc’ category saw sales of 525 units during the month.

Advertisement

Also Read

Car sale in Pakistan: Sales Figures and Comparison
Car sale in Pakistan: Sales Figures and Comparison

Decline in Car Sales Pakistan's car sales witnessed a significant 40% decrease...

Advertisement
Advertisement
Read More News On

Catch all the Business News, Breaking News Event and Latest News Updates on The BOL News


Download The BOL News App to get the Daily News Update & Follow us on Google News.


End of Article

Next Story