Why Politicians Avoid SUVs This Election

Abdullah

18 Dec 2023

455

Why Politicians Avoid SUVs This Election

As the upcoming elections loom on the horizon, the political atmosphere in Pakistan takes on a different tone from the customary spectacle of politicians showcasing sports utility vehicles (SUVs) and double-cabin pickups. This transformation is marked by a subdued spirit and a significant decrease in the display of such vehicles, attributed to both a lack of enthusiasm and the exorbitant costs associated with them.

Decline in Automotive Sales and Plant Shutdowns

Within the broader context of declining automotive sales, the SUV segment is facing a notable slump in demand. Prolonged restrictions on opening letters of credit (LCs) imposed by the State Bank of Pakistan have led to temporary plant shutdowns, exacerbating challenges for local New Vehicle manufacturers.

Impact of High Vehicle Prices on Market Dynamics

The escalating prices of locally assembled vehicles have further strained the automotive market, discouraging potential buyers grappling with rising living costs. This impact is particularly felt among the affluent class, whose purchasing decisions are intricately tied to business dynamics and overall sales.

Election Rallies Hit by Downturn in SUV Demand

Traditionally, political leaders preparing for elections would lead rallies featuring SUVs and double-cabin pickups to garner public support. However, dealers are currently witnessing an unexpected downturn in demand for these vehicles, with notable drops in sales for popular models like Toyota Fortuner and Revo double-cabin.

Sharp Decline in Fortuner and Hilux Sales Ahead of Elections

Data from the Pakistan Automotive Manufacturers Association (PAMA) reveals a telling picture: the combined sales of Fortuner and Hilux vehicles witnessed a sharp decline from 5,298 units during the same period in 2022 to a mere 1,789 in July-November FY24.

Limited Sales and High Prices Puzzle Dealers

Dealers find themselves perplexed by the limited sales leading up to the elections and express eagerness while awaiting potential buyers. The significantly elevated prices of these vehicles compared to 2018 have steered the purchasing trend heavily toward cash transactions, with only 1% opting for bank financing.

The Emergence of the Hybrid Option

Amidst this shifting market dynamic, the recently launched locally assembled Toyota Cross HEV emerges as a potential contender. While it may lack the election-driven allure of powerful petrol and diesel SUVs and pickups, the Hybrid Cars offer fuel efficiency, appealing to a different set of buyers.

Pakistan Elections Automotive Market SUV Demand Political Dynamics Vehicle Sales Economic Impact Hybrid Electric Vehicles in Pakistan 2024 Toyota Corolla Cross HEV 2023 Toyota Corolla Cross HEV Price in Pakistan 2023 Toyota Corolla Cross HEV 2024 Pictures PAMA Data Toyota Fortuner 2023

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