Car Sales Plunge by 30% YoY in September 2023

Abdullah

12 Oct 2023

403

Car Sales Plunge by 30% YoY in September 2023

In a significant market shift, new passenger car sales in Pakistan saw a drastic 30.42% decline in September 2023 compared to the same month of the previous year. This decline is a matter of concern for the automotive industry.

Month-on-Month Improvement of 8.48%

Despite the year-on-year drop, there was a glimmer of hope when comparing September 2023 to the previous month. New car sales showed a positive upswing of 8.48%, indicating a potential recovery.

From August 2023 to September 2023, New Cars Price in Pakistan 2023 production numbers increased by 0.53%, reaching a total of 6,264 units. While this may suggest some resilience in the market, the bigger picture reveals a significant drop of 15.33% compared to September 2022.

Challenges in the First Three Months of Fiscal Year 2024

During the first three months of fiscal year 2024 (3MFY24), a total of 16,021 cars were sold, marking a considerable decrease of 43.93% from the same period the year before. The primary factors contributing to this sales decline are high interest rates and decreased economic activity, making it difficult for consumers to finance cars.

Import Restrictions and Plant Closures

Import restrictions took a toll on the influx of CKD (Completely Knocked Down) parts and materials, leading to temporary plant closures for most New Car 2023 assemblers. Unfavorable market conditions further impacted the sales of locally assembled vehicles.

Sales Categories Analysis

Analyzing the sales categories, cars with engines '1300cc and above' emerged as the most popular, with 2,939 units sold. In the 'Below 1000cc Cars' category, the Suzuki Alto took the lead with 2,551 units sold. However, the '1000cc' category lagged behind, with only 691 units sold during September 2023.

Despite the slight improvement in car sales last month due to the relaxation of regulations concerning Letters of Credit (LCs) for imports, the long-term scenario remains grim. Escalating Car Prices, expensive auto financing, and the low purchasing power of consumers are identified as the primary reasons behind the year-on-year sales decline. The automotive industry faces a challenging road ahead.

New Passenger Car Sales Pakistan September 2023 Market Decline YearonYear MonthonMonth Improvement Car Production Challenges Fiscal Year 2024 Import Restrictions Plant Closures Sales Categories

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