News Brief
Pakistan's Economy Hits The Brakes, Literally: Sells Less Than 2 Per Cent As Many Cars As India In September
Pakistan Automotive Manufacturers Association (PAMA) reported a decline in car sales from 8,400 units in September to a mere 6,200 units in October.
In a tale of two contrasting automotive markets, Pakistan grapples with a substantial decline in car sales, while India experienced a remarkable surge in September, according to data reported by respective automotive associations.
Pakistan's Automotive Industry Faces Challenges
In Pakistan, the automotive sector continues to face a myriad of challenges, leading to a significant downturn in sales.
The Pakistan Automotive Manufacturers Association (PAMA) reported a decline in car sales from 8,400 units in September to a mere 6,200 units in October, reported Hindustan Times.
This downward trend extends to the overall fiscal year, with a staggering 44 per cent decrease in sales, plummeting from 48,573 units to 27,163 units compared to the same period in the previous year.
Major contributing factors to this decline include declining demand, increased sticker prices due to currency depreciation, high taxes, and expensive auto financing.
Even prominent market players such as Atlas Honda, Pak Suzuki, Toyota, Hyundai, and Kia are feeling the impact.
Motorcycle sales, considered indicative of shrinking purchasing capacity, have also fallen by 10 per cent in the first four months of the fiscal year, compounding the industry's struggle.
India's Automotive Sector Witnesses a Surge in September
In stark contrast, India's automotive sector experienced a notable surge in retail sales in September, as reported by the Federation of Automobile Dealers Associations (FADA).
The festival season spurred heightened demand across vehicle segments, leading to an overall increase in automobile registrations to 18,82,071 units, up from 15,63,735 units in September 2022.
Passenger vehicle registrations saw a substantial rise to 3,32,248 units, attributed to improved vehicle availability.
Commercial vehicle registrations also displayed a positive trend with a 5 per cent year-on-year growth, totaling 80,804 units in the past month.
Three-wheeler sales witnessed a significant surge of 49 per cent, reaching 1,02,426 units in September, compared to 68,937 units in the same month of 2022.
The divergent trends between Pakistan and India underscore the complex dynamics influencing automotive markets.
While Pakistan grapples with economic challenges, high taxes, and depreciating currency, India's automotive sector thrives on increased demand and improved vehicle availability during festive seasons.
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