The May 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 May 2023 increased by 19% to 5,290 units compared to April 2023 sales of 4,463 units.
However, when we examine the year-on-year sales, the situation remains critical. In May 2023, the overall year-on-year car sales plummeted by 77% to 5,290 units in comparison to May 2022 sales of 22,893 units. Similarly, year-on-year bike sales experienced a decline of 34%, while tractor sales dropped by 28%.
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, bikes, and tractors in the monthly car sales. However, the car sales in Pakistan are declining when we see the yearly numbers. It is worth noting that while cars like Alto & Swift have gained significantly on a monthly basis, the sedans have struggled a lot on a yearly basis (even on a monthly basis as will be described later in this blog).
Car Sales Highlights
Here are the highlights of car sales in May-2023.
In the latest car sale report, there are some signs of recovery on a monthly basis for hatchbacks. However, the sales are significantly down compared to the same month the previous year. The case is worse for the sedans as their sales have dropped a lot more than the hatchbacks (see Honda City & Civic for example).
Bike Sales Highlights
These are the bikes’ sales for the month of May-2023.
As the cars are recovering compared to the previous month, bikes are following the same pattern. Only Suzuki bikes have negative sales even on a monthly comparison. The main reason behind this can be the frequent plant shutdowns. If we talk about yearly comparisons, all the companies are facing negative sales.
Tractor Sales Highlights
Let’s see the tractors’ sales for May-2023.
The sales of Fiat tractors are negative in both monthly and yearly comparisons. However, the sales of Massey Ferguson tractors have increased to 25% monthly. A year-on-year comparison shows -40% sales for Massey Ferguson tractors though.
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 hatchbacks, bikes, and tractors. However, the numbers are still negative when we compare the sales on a yearly basis.
Some were expecting that the government will reduce the burden of taxes and duties to revive the industry but it is not the case now. Only the duty on HEVs is relaxed a bit. The government has proposed to lift the tax cap on imported cars (from 1300cc to 1800cc) which may increase the prices of imported used cars. In this way, the demand for the local cars may increase. But if the customers can’t afford to purchase them, it is not going to help.
Let’s see how the automobile companies move on from here as currently, their sales are significantly down. We cannot say anything about the future of automobile industry at the moment due to the uncertain economic condition.
What are your thoughts on the car sales in Pakistan, 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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