The June 2023 automobile sales report has been released, revealing a mixed bag of results when comparing monthly and yearly figures. While there are signs of recovery in the monthly sales, the companies in the automobile industry continue to face challenges on an annual basis. Specifically, the overall month-on-month car sales in June 2023 increased by 10% to 6,034 units compared to May 2023 sales of 5,464 units.
However, when we examine the year-on-year sales, the situation remains critical. In June 2023, the overall year-on-year car sales plummeted by 79% to 6,034 units in comparison to June 2022 sales of 28,379 units. Similarly, year-on-year bike sales experienced a decline of 41%, while year-on-year tractor sales dropped by 61%.
Let’s see how much the automobile industry is suffering these days.
Main Highlights
The following are the main highlights of the blog.
As you can see, there are some positive numbers for cars in the monthly sales. However, the number is still negative when we see the yearly numbers. It is worth mentioning that all the vehicles have negative sales when compared to the year-on-year basis. To get a fair idea, let’s discuss sales of cars, bikes, and tractors separately in this blog.
Cars
Here are the highlights of car sales in June-2023.
In the latest car sale report, there are some signs of recovery on a monthly basis for most cars. However, the sales of Hyundai Sonata, Suzuki Swift & Cultus, and Toyota Fortuner & Hilux are still down compared to the previous month.
If you are pleased to see the massive recovery of Honda cars, it is mainly because their sales dropped massively in the previous month. Even this month with a 305% increase in monthly sales, the yearly sales are down by 93% that shows the actual reality.
In June 2023, there were positive signs of recovery in the monthly sales of most car models. However, some models like Hyundai Sonata, Suzuki Swift & Cultus, and Toyota Fortuner & Hilux still struggled to regain momentum. Notably, the Honda City and Civic recorded an impressive 305% increase in monthly sales, but the year-on-year sales were down by 93%, revealing the actual market condition.
Bikes
These are the bikes’ sales for the month of June-2023.
As per the data, the signs are not good for the bike industry. Both monthly and yearly sales have declined significantly for all the bike manufacturers. Suzuki’s sales even dropped by 89% when compared on a year-on-year basis. It is mainly due to production suspension and extended plant shutdowns.
The bike industry is facing challenging times, with both monthly and yearly sales declining significantly for all manufacturers. Suzuki’s year-on-year bike sales dropped by 89%, reflecting the impact of production suspensions and extended plant shutdowns. Other manufacturers such as Honda, Yamaha, Road Prince, and United also experienced notable declines in bike sales. So, the situation is concerning for the motorcycle industry.
Tractors
Let’s see the tractors’ sales for June-2023.
Tractor sales declined by 61% compared to the previous year. While Fiat’s sales were negative both monthly and yearly, Massey Ferguson saw a 42% increase in monthly sales. However, Massey Ferguson still experienced a 51% decline in year-on-year sales.
Conclusion
Overall, it seems that the auto industry is reviving on a monthly basis. We have seen a massive increase in the monthly sales of Honda cars. However, the numbers are still negative when we compare the sales on a yearly basis. The same is the case for other car manufacturers. The situation for bike manufacturers is alarming as they have negative sales for both monthly and year-on-year comparisons.
In the revised Pakistan budget 2023-24, the taxes on non-filer vehicle buyers have been increased. It may result in a further reduction in the demand that may lower automobile sales further in the coming months.
The main reason behind these low sales is the economic crisis due to which companies have increased the prices of vehicles so much that many people can’t afford them now. Let’s see how the automobile companies move on from here as currently, they have just passed down the burden to consumers which has resulted in record-low sales.
What are your thoughts on the current situation of the automobile industry and how are you affected by it? Tell us in the comment section below.
Data was taken from Pakistan Automotive Manufacturers Association (PAMA). Percentages are rounded off so the actual may slightly vary.
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