PAMA – Toyota Fortuner & Hilux Dethroned Suzuki Alto

The Pakistan Automotive Manufacturers Association (PAMA) car sales report for January 2023 has been released. Alto has been dethroned by Toyota Fortuner & Hilux and shockingly, it is at the bottom of the table now. The data shows contrasting experiences for different demographic groups. Overall, the worsening economic situation has caused huge problems for automobile companies.

The overall car sales are down by around -47% this month (Jan-23: 10,867 units) compared to the same month last year’s sales (Jan-22: 20,610 units). The month-on-month car sales are also down by around -36% (Jan-23: 10,867 units) compared to last month’s sales (Dec-22: 17,012 units).

The industry is going through one of the worst times. It is due to the current economic disaster in Pakistan in which inflation has broken records. The companies are also facing issues in importing parts due to restrictions and the Letter of Credit issue in Pakistan (explained later in this blog). Due to this, some big companies are forced to suspend production plants. All these elements are affecting sales negatively.

Let’s see which cars have performed better in this storm and which got carried away.

Latest Car Sales Numbers (PAMA Pakistan)

Let’s take a look at the overall car sales statistics.

We will compare the following statistics:

• YOY (year-on-year) sales: 

Sales of a car model in Jan 2023 as compared to its sales in the same month last year (Jan 2022).

• MOM (month-on-month) sales: 

Sales of a car model for Jan 2023 compared to its sales for the previous month (Dec 2022).

Total Car Sales Stats

Total year-on-year car sales statistics:

Jan 2022	Jan 2023	Difference(units sold)	Difference(%)
20,610	10,866	-9,744	-47.3%

Total month-on-month car sales statistics:

Dec 2022	Jan 2023	Difference(units sold)	Difference(%)
17,012	10,866	-6,146	-36.1%

Cars’ Sales in Pakistan (Jan 2023)

Let’s see how much the car sold in Pakistan in January 2023.

MOM Cars’ Sales (Dec-22 vs Jan-23)

The following are car sales statistics of the major automobile manufacturers. These numbers are taken from Pakistan Automotive Manufacturers Association (PAMA). 

This table shows that the MOM sales of Honda, Toyota, and Hyundai are positive. But they are negative for Suzuki. The reason behind this negative MOM sales seems to be the production suspension due to import restrictions and LCs issue. 

Highlights

• Suzuki Alto sales decreased by 99%
• Hyundai Sonata sales increased by 241%
• Toyota Fortuner & Hilux sales increased by 96%
• Honda City & Civic sales increased by 65%
• Hyundai Tucson sales increased by 69%

Hyundai Sonata & Tucson, Honda City & Civic, and Toyota Fortuner & Hilux have made massive recoveries on a month-on-month basis. Suzuki Alto lost nearly 99% of its sales in January. Other Suzuki cars have also faced a decline in sales due to the aforesaid issue.

YOY Cars’ Sales (Jan-22 vs Jan-23)

These are the year-on-year car sales statistics of the major automobile manufacturers.

As we can see, the year-on-year sales of all the automobile manufacturers (reported in PAMA) have decreased except Hyundai. It indicates that despite the increase in month-on-month sales, the companies are still struggling to even come closer to the sales number of last year.

Highlights

• Hyundai Tucson sales increased by 359%
• Honda HR-V and BR-V sales increased by 159%
• Suzuki Alto sales decreased by 99%
• Toyota Corolla & Yaris sales decreased by 69%

Now, let’s see where the sedans and hatchbacks stand against each other.

Sedans Sales in Pakistan: Honda About to Beat Toyota! 

Here are the popular sedans sold by different companies.

As we can see, Honda sedans are about to catch the sales of Toyota sedans. It is due to a decline in the sales of the Toyota Corolla & Yaris and an increase in the sales of the Honda City & Civic.

Year on Year sales stats show that both Toyota and Honda sedans’ sales have declined massively. The reason seems to be the increasing prices and production suspensions due to the economic situation of the country. But the number is positive for the Hyundai sedans (Elantra & Sonata).

Hatchbacks Sales in Pakistan: Alto at the Bottom

Let’s see which hatchback is at the top now.

Surprisingly, Suzuki Wagon-R is the best-selling hatchback of January 2023. Alto is right at the bottom with just 44 sales. As we can see, Suzuki’s sales are affected mainly because of the Suzuki plant shutdown due to import restrictions causing supply chain issues. But, Alto sales are the most affected in this economic crisis.

Winners of Jan 2023 

Let’s see the winners of January 2023.

Winners in Terms of the Number of Units Sold

Here, we will show you the winners in terms of total units sold.

Toyota Fortuner and Hilux have replaced Suzuki Alto to get the 1st position in January 2023. The 2nd & 3rd position belongs to the Toyota and Honda sedans respectively (the difference is less than 100 units). 

Winners (In terms of % difference in units sold)

Here are the winners in terms of % difference compared to their previous month’s sales.

Hyundai Sonata is the winner as its sales increased massively by 241% compared to the previous month. 2nd position goes to the Toyota Fortuner & Hilux as their sales have increased by 96% on a monthly basis. The 3rd position goes to the Hyundai Tucson as its sales are up by around 69%.

The Losers of Jan 2023

Let’s see the cars that have the least number of units sold or sales as compared to the previous month. 

Losers in Terms of the Number of Units Sold

Here are the cars that have the least number of units sold in Jan-2023.

Alto, the most popular hatchback in Pakistan (At the moment), is the least-performing car for the month of January 2023. Next in the line are Hyundai Elantra and Sonata. Hyundai’s sales have increased massively compared to their own previous sales but still are at the bottom compared to other cars. Shockingly, Suzuki Swift, Cultus, and Bolan are also on the list of losers for this month.

Losers in Terms of % Difference in Units Sold

Let’s see the cars that have lost their sales massively as compared to the previous month. 

Again, Alto sales have declined massively (-99%) on a monthly as well as yearly basis. All the worst performers here are Suzuki’s cars which have lost sales compared to the previous month.

Suffering and Comfort – Two Sides of Contrasting Experiences

As we can see in the table below, the sales of vehicles used by common or middle-income people have decreased. As per some reports, Suzuki cars are being sold on around up to 4 lac on/premium. Suzuki has also suspended production for extended periods. These are the main reasons that have made it difficult for medium-income people to buy an economical car. Frequent price hikes are another reason behind this. 

On the other hand, we can see a contrasting pattern where the sales of some vehicles used mostly by high-income people have increased massively compared to the previous year. The reason behind Fortuner & Hilux’s sales increase can be the import restrictions on the luxury vehicles like Parado, Land Cruiser, etc. But that still shows that high-income people are able to buy superior vehicles whereas the low-income group is even struggling to get a budget-friendly vehicle. 

Letter of Credit Issue in Pakistan

Due to the worsened economic conditions and shortage of US Dollars in the country, the State Bank of Pakistan (SBP) introduced a policy of “prior approval for imports” last year. Due to this, companies and businessmen couldn’t directly get LCs from banks without taking prior approval. 

Many will find no issue in this process. But the problem arises when the approvals are delayed. As reported by different media outlets, businesses are facing difficulty in obtaining approvals due to the shortage of dollars. As a result, many businesses have not been able to import items (raw materials, equipment, etc.) which is disrupting their supply chain. Due to this, many are forced to shut down their operations for the time being.

Click the following link to see the impact of this issue on different industries and businesses. 

Non-Opening LCs / Letter of Credit Issue in Pakistan: A Threat to Industries?

Final Verdict

The worsening economic situation is causing frequent price hikes, supply chain issues leading to production suspension, and many other issues for the automobile industry. Due to this, the sales of most automobile companies are affected negatively. 

Many people have started to buy used cars due to these reasons. Also, the prices of used cars have increased due to overall situation but they are readily available compared to the new cars. As inflation is high and the buying power of common people is not allowing them to buy a new car, the automobile industry can face this type of decline in car sales in the coming months as well.