The continual suffering of Pakistan’s auto sector
The passenger cars sale had faced another decline. The sales had decreased down to 38% in December for the 9 consecutive times in a year. Recovery is not yet in sight for the declines due to the high cost of auto loans and rising vehicle prices.
The industry data released on Monday by PAMA or Pakistan Automotive Manufacturers Association showed stats of the first half of the fiscal year 2020 too. According to the data, the sales had dropped to 9,987 units in the last month of 2019. The data collected for 2018 showed the sales stat of 16,141 vehicles.
With a year to year, comparison demonstrated that the sales stood at 104,038 units in 2018 whereas this year the sales in the first half plunged to 59,097 units.
Despite Suzuki’s Alto, all four and above wheeler vehicles have faced a decline in sales. According to analyst the main reason behind declined sales is the lack of interest of the buyers due to high prices.
In the last month of last year, sales of 1300 CC cars above vehicles lowered down to 50 percent to 3,246 units. Whereas in December 2018, the units sold for 1300 CC cars were 6,523. The selling of Toyota Corolla was in 2,085 units (50 percent decrease) last year whereas in December of 2018 the selling unit for Corolla was 4,179. Honda Civic units that were sold last year were only 884 while in 2018 1989 models were traded.
Coming towards Suzuki swift, it also faced a meager decline of 28% as it could manage the sales of only 277 cars. The sales rate for 100CC cars has also dropped down by 55%. The producer Pak-Suzuki motors cut down the production of Suzuki Cultus and Suzuki WagonR by 70 percent.
The 800 CC cars like Suzuki Alto faced a decline of only 5% in the last two years making it 4,616 from 4,896 units in December last year. According to an analyst, the halted manufacture of Suzuki Mehran impacted the 800CC category sales greatly.
The sales of Buses also decreased down according to the December PAMA report. In 2018, 470 units sold whereas in 2019 only 312 units were purchased. Jeep sales had dropped from 531 to 197 units in the last two years. A popular jeep known as Suzuki Fortuner’s trade dropped by 50 percent. Last year only 76 units were sold whereas in 2018 report 153 units were purchased by the consumers