Auto sector of Pakistan is going through very tough times these days. This is the first time after 6 years that automobile sales in Pakistan have witnessed a decline. The ongoing massive depreciation of Pak Rupee against the US Dollar and imposition of additional duties and taxes have pushed the prices of automobiles beyond the reach of masses.
Honda and Toyota have already revised their production plans amid massive decline in sales and has announced to shut down their plants in certain days due to low demand. It has also been learnt that due to low production volumes the automakers have already cut down shift operations from two to one. Furthermore it is feared that the downfall in automobile sales may render about 150,000 people jobless.
According to figures from Pakistan Automobile Manufacturers Association (PAMA), the industry began the fiscal year 2019-20 with 50% reduction in sales compared to data from July 2018-19. However when you look at the production & sales ratio, it will give you an even bleaker picture.
Honda Atlas produced a total of 4,664 combined units of Civic and City in July 2018 and sold 4,609 units. However in July 2019 they produced only 2,371 while managed to sell only 1,452 units of both these cars.
As for the BR-V, Honda produced 417 units of BR-V in July 2019 compared to 420 units in the same month a year earlier. However they sold 372 units in July last year while managed to sell only 242 units in July 2019.
Toyota Corolla is known as the bestselling local assembled car in Pakistan but it took a hit too. Indus Motor Company produced 4,652 units of Corolla in July 2018 while only 2,827 units were rolled out in July 2019. In terms of sales while the company sold 4,566 units of Corolla in July 2018, the figure hardly reached 1,981 units in July 2019.
Toyota Hilux saw 733 units produced in July 2018, while it witnessed a production of 369 units in July 2019. As for sales, 682 units were sold in July 2018 compared to 358 units sold in July 2019. Fortuner also show rather disappointing figures with 302 units produced in July a year earlier compared to just 90 units produced in July 2019, while only 74 were sold in July this year compared to 220 units in July 2018.
The largest assembler of Pakistan was in hot waters too. Pak Suzuki WagonR saw a production of 3,245 units in July 2018 compared to which 2,772 were produced in July this year. As for sales while 2,767 units were sold in July 2018, only 843 were sold in July 2019.
Cultus is currently the bestseller in Pak Suzuki’s lineup after discontinuation of Mehran. While its production rose to 2,293 units in July 2019 compared to 1,786 units in the same month a year earlier, its sales took a dip to 1,208 units in July 2019 compared to 1,661 units in July 2018.
It wasn’t too good for the four decades old Ravi and Bolan as well. Ravi produced 1,936 units in July 2018 versus 1,425 units in July 2019 and it sold 1,195 units in July last year compared to just 840 in July this year. Bolan van saw a production of 1,858 units in July 2018 and sold 1,346 units however it produced 1,367 units in July 2019 and sold only 332.
Pak Suzuki’s last bencher Swift saw 517 units produced in July 2018 versus 384 units in July 2019. As for sales 484 units were sold in July last year compared to just 174 units in July 2019.
Auto industry had forecasted to increase its sales to 0.3 million by 2021 and half a million units by 2022; however from the looks of it, the sector is far from achieving this goal.