Advertisement
Advertisement
Advertisement
Advertisement
Analysts Predict Continued Decline in Car Sales for 2024

Analysts Predict Continued Decline in Car Sales for 2024

Analysts Predict Continued Decline in Car Sales for 2024

Pakistani Automobile Industry

Advertisement

In a grim turn of events, the October sales figures for local automakers have revealed a disheartening reality for the Pakistani automobile industry, painting a bleak picture of an industry grappling with challenges such as dwindling sales. However, a closer analysis of the Pakistan Automobile Manufacturers Association (PAMA) data exposes an even more alarming trend in production figures.

The Honda and Toyota Experience Sharp Declines in Production

As of the first four months of this fiscal year, Honda’s production of Civic and City combined plummeted by a staggering 57%, falling from 6,440 units in the same period of the previous fiscal year to a mere 2,759 units. On average, this translates to approximately 450 units of each model produced per month, marking a drastic decline.

Toyota faced a similar fate, with a 55% drop in the production of the Corolla and Yaris (combined), from 8,290 units to just 3,713 units in the first four months of the current fiscal year. The production of Hilux and Fortuner (combined) also saw a significant decline, witnessing a 63% reduction from 4,283 units to 1,571 units.

Hyundai and Suzuki Follow Suit

Advertisement

Hyundai’s Elantra emerged as the worst-selling model in Pakistan, experiencing a staggering 93% decline in production, dropping from 1,015 units to a mere 73 units in the discussed period. The production of the Hyundai Tucson also witnessed a 41% reduction, from 2,977 units to 1,793 units.

Suzuki faced production challenges as well, with the Swift experiencing a 55% decline in production, from 3,804 units to 1,703 units. The popular Alto, the bestselling car in the country, suffered a 30% decline, dropping from 13,497 units to 9,344 units in the first four months of this fiscal year.

Crisis Extends Across Suzuki Models

The crisis extended to various Suzuki models, with Cultus seeing an 84% decline in production (from 3,033 units to 478 units) and Wagon R witnessing a 77% reduction (from 3,148 units to 729 units). Similarly, Bolan and Ravi faced 76% and 70% reductions in production, respectively.

BAIC BJ40 Faces an Uncertain Future

The BAIC BJ40, which saw 68 units produced in the first four months of the previous fiscal year, has not witnessed a single unit produced since the beginning of this fiscal year. This raises concerns about the model’s future, despite managing to sell 24 units in the first four months of this fiscal year.

Advertisement

Sales outpace production

In several instances, assemblers managed to sell more units than they produced, indicating a substantial inventory. Toyota sold 796 units of Yaris and Corolla (combined) in October against just 482 units produced, and Suzuki sold 328 units of Cultus in October against only 173 units produced. This trend suggests a surplus of unsold inventory, justifying the attractive “immediate delivery” schemes currently being offered.

Challenging Times Ahead for the Auto Industry

Analysts predict that the testing period for the local auto industry will persist, with expectations that car sales may continue to dwindle into the first half of 2024. The rock-bottom sales figures are anticipated to be mirrored by a decline in production numbers. Whether attributed to supply chain constraints or import restrictions, the prevailing economic situation has significantly hampered the purchasing power of the masses. Even car financing seems insufficient to enable white-collar individuals to afford a brand-new vehicle. Real change may only come with robust government measures aimed at combating inflation and alleviating the burden on the populace. The road to recovery for the local auto industry appears fraught with challenges, requiring decisive action to steer it back on track.

Also Read

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

In October 2023, the Pakistani automotive sector faced a significant downturn, marked...

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