Automobile sector in Pakistan continue to suffer as sales of locally assembled cars went down by 44% as of the first 4 months of this fiscal year. Between July and October 2019 sales of 40,586 units were recorded compared to 72,563 units in the same period of previous fiscal year.
Honda Atlas suffered the most as sales of Civic & City (combined) declined by 70%. The company managed to sell 4,961 units of the duo in the first 4 months of this fiscal year compared to 16,643 units sold during the same period last year. Sales of BR-V also took a dip by -52% with just 877 units sold compared to 1,816 units in the said period last year. Honda Atlas still having a piled up unsold inventory in excess of 2,400 units has announced to operate its plant for only 7 days in November.
Things at Indus Motor Company (IMC) aren’t too impressive as well. As of the first 4 months of this fiscal year, sales of Toyota Corolla came down by 60% to just 7,485 units compared to 18,814 units sold in same period in previous year. In addition to Corolla, sales of Fortuner SUV so far in this fiscal year also declined by -57% to 367 units compared to 864 units sold in the same period of previous year. Hilux also to a dip by -37% with 1,351 units sold compared to 2,150 units sold in the first 4 months of previous fiscal year.
Owing to slow sales, the IMC plant is now being operated on single-shift basis and will continue to operate like this till the end of this year. According to sources, the company still has more than 2,000 unsold units of Toyota Corolla at its disposal.
Sparing Suzuki Alto 660cc, Pak Suzuki is also suffering from a dreadful decline in sales. WagonR sales took a dip by 76% to 2,698 units, followed by Bolan the sales of which declined by 72% to 1,505 units, Cultus with 34% reduction to 4,777 units, Ravi decline by -47% to 5,289 units and Suzuki Swift reduced by 63% to just 675 units in the first 4 months of this fiscal year.
Suzuki Alto, the only car selling in decent numbers recorded 16,991 units sales in the discussed period. The handsome sales of Alto despite multiple price hikes has helped Pak Suzuki operate without observing non-production days like Honda and Toyota. Sales of locally assembled cars are expected to remain low as the end of year approaches, since buyers generally wait for the New Year to purchase new cars. We will have to wait to find out if sales are recovered in January 2020.