This year, the automobile industry has faced many difficulties and issues regarding sales and growth. Due to the higher interest rates and economic situations automobile industry experienced a massive decline. Despite a month-on-month in October, collectively, car sales declined 47% from 74,952 to 39,700 between July-October 2022 due to inflation. Customers’ purchasing power has also reduced, directly affecting the automobile sector.
In comparison, car sales jumped from 9,213 in September to 11,129 in October, which is still far below October 2021’s 17,413.
However, the surplus in sales and production in October reflects the situation is improving. The assemblers could deliver cars on time, and the State Bank of Pakistan (SBP) raised quotas. This made it possible for car companies to get their auto parts released from the port.
Meanwhile, Honda, Civic and City sales fell from 10,444 in July-October 2021 to 4,416 in July-October 2022. Not only this but Yaris and Corolla sales also dropped from 19,214 to 8,253.
On the other hand, Suzuki Cultus and Wagon R sales also dropped from 11,454 to 6,779 in the same period last year to 2,952 and 2,181 this year. Suzuki Bolan and Alto sales were also 1,469 and 13,464 compared to 4,012 and 20,773 in July-October 2022. According to the analysis, these massive declines are due to the higher interest rates and rising inflation, which makes luxuries not affordable for an average salaried person.
Moreover, Jeep and pickup sales fell by 45% between July and October 2021. The range fell from 14,969 to 8,234 units in the same period in 2022.
Additionally, tractor sales also recorded a decline of 47% from 17,386 units to 9,258 units. The decline in tractor sales indicates a drop in agricultural output.
Trucks and buses sold 1,109 and 210 units in the current year in comparison to 2,011 and 184 during the same period in 2021.
Besides, if we evaluate the current fiscal year, the first four months, two and three-wheeler sales also dropped 412,111 units from 629,212 over the year 2021.