Auto Apocalypse: Pakistan’s Car Sales Plunge 50% In Last Year

The already troubled auto industry in Pakistan is still suffering as a result of the economic downturn, which has forced automakers to reduce production owing to low inventories. Only 88,620 units were sold in the year July-April 23. This is a dramatic decrease from the 191,238 cars that were sold in the year before, according to the Pakistan Automotive Manufacturers Association (PAMA), which claims that car sales have fallen by 53.7% when compared to the same period last year.

The Plunging Car Sales Figures

The condition of Pakistan’s auto industry is not hidden from anyone. Especially the last 6 months were crucially affected by production cutdowns and excessive price increases. Companies went on to increase prices twice every month, making it nearly impossible for customers to buy a car.

The effects of these measures are quite evident in the PAMA report numbers. The plunging sales figures tell the tragic story of our country’s increasing inflation, difficulty in obtaining raw materials, and imposition of regulatory duty on cars, all led to the near-demise of our car industry.

These figures also show how the economic slump has affected customer confidence and spending power, which presents a difficult picture for Pakistan’s auto industry. The sharp decline in auto sales impacts the whole economy- the consumers and manufacturers.

The only sector that observed a rise in sales figures is the Buses sector. The improvement has largely to do with the several metro projects that have been started throughout the country. On the contrary, even trucks have been sold 39.7% lesser units than the last year.

It is critical for stakeholders to consider new strategies to reenergize the market and reignite customer demand while the sector struggles with these issues. If immediate steps are not taken to revive the auto industry, it will forever be plagued with inflation and deficiency.