Despite soaring car prices, Pakistan’s automotive industry experienced a 98% growth in March, with 7,201 units sold compared to 3,642 units in the previous month.
However, when including non-PAMA sales, there was a 68% decline compared to the same month last year due to non-production days and decreased purchasing power.
The monthly growth can be credited to increased sales from Pak Suzuki Motor Company and Indus Motors, which saw a 475% and 6% month-on-month increase, respectively.
Consumers gravitated toward affordable vehicles below 1000cc due to inflationary pressures, resulting in a 423% rise in sales. However, the State Bank of Pakistan’s import restrictions remains a concern, limiting production capabilities for auto assemblers.
Data from PAMA showed that in March 2023, all vehicle categories except buses and trucks experienced a year-on-year decline. During the first nine months of the fiscal year 2022-23, 85,776 units were sold, a 50% drop compared to the same period in FY22.
The industry’s future remains uncertain due to floods, plant shutdowns, reduced consumer purchasing power, and higher prices.
