The never-ending trials and tribulations of the Pakistan auto sector continue. The latest figures from the Pakistan Automotive Manufacturers Association (PAMA) confirm our worst fears, as sales are at their worst in the negative and at best, stagnant. Is there a ray of hope? Which auto manufacturers took the biggest hit in terms of year-on-year (YOY) and month-on-month (MOM) sales?
In this blog, let’s delve into a thorough analysis of Year-over-Year (YOY) numbers for the months of July, August, September, October, and November 2023, comparing them with the corresponding months in 2022. This comprehensive data provides a more reliable indicator of a company’s sales and the future trajectory of the auto sales market, as opposed to Month-over-Month (MOM) sales figures.
Let’s begin with the general overall sales numbers and then work our way into the specifics.
Passenger Car Sales: A Rollercoaster Ride
YoY Plummet: 68% Decline
The passenger car sales witnessed a 68% decline on a year-on-year basis, with a total of 4,875 units sold in November 2023. This represents a significant drop from the 15,432 units recorded in November of the previous year.
Monthly Momentum: A 1% Uptick
However, the month-on-month comparison provides a glimmer of hope. In October 2023, 4,850 car units were sold, compared to 4,875 units sold in November 2023, reflecting an almost 1% increase in sales.
What’s Driving the Numbers?
Factors Behind the YoY Decline
The YoY decline in passenger car sales is attributed to several factors:
- Escalating car prices
- Expensive auto financing
- Lower consumer purchasing power
Company-wise Sales Numbers
Pak Suzuki: Navigating Challenges
- YoY Decline: 72%
- Total units sold: 3,506
Indus Motor Company Limited: Facing Headwinds
- YoY Decline: 71%
- Total units sold: 956
Honda Atlas Car: A Mixed Bag
- YoY Decline: 49%
- Total units sold: 1,015
- MoM Increase: 121%
Tractor Tales: A Different Terrain
Al Ghazi Tractors: A Meteoric Rise
- YoY Increase: 412%
Millat Tractors (MTL): Cultivating Success
- YoY Increase: 155%
The combined tractor industry sales reached 3,510 units, marking an impressive 183% YoY increase. However, a 33% MoM decline, with AGTL down by 68% and MTL by 6%, adds a twist to the tale.
Individual Car Models: Unveiling the Performance (YOY)
Honda Civic/City
- 5MFY24 Sales: 3,151 units
- Previous Year’s Sales (5MFY23): 7,925 units
- Percentage Decrease: 60%
Honda BR-V and HR-V
- 5MFY24 Sales: 833 units
- Previous Year’s Sales (5MFY23): 1,099 units
- Percentage Decrease: 24%
Suzuki Swift
- 5MFY24 Sales: 1,852 units
- Previous Year’s Sales (5MFY23): 5,708 units
- Percentage Decrease: 68%
Suzuki WagonR
- 5MFY24 Sales: 1,420 units
- Previous Year’s Sales (5MFY23): 2,897 units
- Percentage Decrease: 51%
Suzuki Cultus
- 5MFY24 Sales: 1,611 units
- Previous Year’s Sales (5MFY23): 4,086 units
- Percentage Decrease: 60%
Alto 660cc
- 5MFY24 Sales: 11,306 units
- Previous Year’s Sales (5MFY23): 20,716 units
- Percentage Decrease: 45%
Toyota Corolla and Yaris
- 5MFY24 Sales: 4,725 units
- Previous Year’s Sales (5MFY23): 10,186 units
- Percentage Decrease: 54%
Toyota Fortuner, Revo, and Hilux
- 5MFY24 Sales: 1,789 units
- Previous Year’s Sales (5MFY23): 5,298 units
- Percentage Decrease: 66%
Hyundai Elantra and Sonata
- 5MFY24 Sales: Elantra – 426 units, Sonata – 402 units
- Previous Year’s Sales (5MFY23): Elantra – 1,137 units, Sonata – 504 units
- Percentage Decrease: 62% (Elantra) – 20% (Sonata)
Hyundai Tucson
- 5MFY24 Sales – 1,558 units, 5MFY23 Sales – 1,877 units
- Percentage Decrease: 17%
Sazgar Haval
- 5MFY24 Sales: 1,233 units
- Previous Year’s Sales (5MFY23): 416 units
- Percentage Increase: 196%
Conclusion: Financial Year 2024 – The First Five Months
As we already have the sales statistics for the last five months of FY24, let’s take a look at them and try to predict what awaits the auto sector in the coming months.
The numbers are not encouraging, to put it mildly. The decline in passenger car sales stands at a substantial 53%, totaling 25,746 units. This is due to ever-increasing car prices, expensive auto financing, and lower consumer purchasing power – the trio of factors that have played havoc with the local auto industry. As long as these three factors remain, there is very little hope of hearing good news from the Pakistan auto industry.
Do you agree with our analysis that the sales are likely to remain in the Red or Danger Zone for the foreseeable future? Leave your opinions and analysis in the comments section. If you are looking for the sale or purchase of a new or used vehicle in Pakistan, OLX Motors is the largest classified platform.
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