Pakistan economic crisis: Country sees massive 84% dip in vehicle sales
The month of April saw an astonishingly low 2,844 units sold in the country, compared to the 18,626 sold in April of 2022.
- May 19, 2023,
- Updated May 19, 2023 3:15 PM IST
Pakistan Automotive Manufacturer’s Association (PAMA) has revealed an 84 per cent dip in vehicle sales. The month of April saw an astonishingly low 2,844 units sold in the country, compared to the 18,626 sold in April of 2022.
The steep drop in vehicle purchases can be attributed to low demand. This dip in demand could be due to varying factors, such as inflation, rising interest rates, rising fuel prices and escalating end costs for customers. This concoction of parameters has dramatically affected the consumer’s purchasing power, curbing the demand.
Entry-level car segments like the 1000cc segment are the biggest victims of this drop, with PAMA data reporting that the segment sold a mere 276 units in April. Popular models like WagonR, Cultus and the Suzuki Alto massively undersold as well.
Segments above 1300 cc, targeted towards more well-off portions of society, sold 1,585 units in April. The same segment had reported 9,189 units sold in the month prior.
It was not just passenger vehicles that were swept under the tide. The sales of buses, trucks and tractors were well below the standard as well. A lack of data on two and three-wheelers makes it hard to reach a conclusion but can be expected to be no exception as the auto-financing figures in the country have painted the picture signalling a downward trend of demand.
While the sales plummeted in Pakistan, the next-door neighbour, India, reported impressive numbers. India reported a sale of 3.31 lakh units in the month of April, sticking to what is the norm for the third-largest vehicle market. Maruti Suzuki led the charge in the country, reporting a 10.50 per cent spike in sales, jumping up to 1,39,519 units sold in April, compared to 1,26,261 in April 2022. Domestic passenger vehicle sales were up for the company, too, with 137,320 units compared to the 121,995 units last year.
Pakistan Automotive Manufacturer’s Association (PAMA) has revealed an 84 per cent dip in vehicle sales. The month of April saw an astonishingly low 2,844 units sold in the country, compared to the 18,626 sold in April of 2022.
The steep drop in vehicle purchases can be attributed to low demand. This dip in demand could be due to varying factors, such as inflation, rising interest rates, rising fuel prices and escalating end costs for customers. This concoction of parameters has dramatically affected the consumer’s purchasing power, curbing the demand.
Entry-level car segments like the 1000cc segment are the biggest victims of this drop, with PAMA data reporting that the segment sold a mere 276 units in April. Popular models like WagonR, Cultus and the Suzuki Alto massively undersold as well.
Segments above 1300 cc, targeted towards more well-off portions of society, sold 1,585 units in April. The same segment had reported 9,189 units sold in the month prior.
It was not just passenger vehicles that were swept under the tide. The sales of buses, trucks and tractors were well below the standard as well. A lack of data on two and three-wheelers makes it hard to reach a conclusion but can be expected to be no exception as the auto-financing figures in the country have painted the picture signalling a downward trend of demand.
While the sales plummeted in Pakistan, the next-door neighbour, India, reported impressive numbers. India reported a sale of 3.31 lakh units in the month of April, sticking to what is the norm for the third-largest vehicle market. Maruti Suzuki led the charge in the country, reporting a 10.50 per cent spike in sales, jumping up to 1,39,519 units sold in April, compared to 1,26,261 in April 2022. Domestic passenger vehicle sales were up for the company, too, with 137,320 units compared to the 121,995 units last year.