The auto industry continues to perform poorly as sales of domestically produced cars fell by 43% during the first seven months of the current fiscal year, falling further by 42% for vehicles, 19% for 44 and pickups, 52.6% for tractors, and 32.5% for two- and three-wheelers.
Since buyers prefer to purchase the most recent models, January, the first month of the new calendar, often experiences a dramatic increase in sales. Contrary to previous months, however, January 2022 saw a sharp decline in automobile sales and production, from 13,758 and 13,780 in December 2022 to 5,723 and 6,021 respectively. The sharp decline in automobile sales was caused by rising vehicle prices, high markup rates, restrictions on financing, factory closures due to part shortages, and delays in vehicle deliveries.
Production and sales of cars fell sharply during the first seven months of FY23 by 38.6% and 43% to 77,101 and 74,933 units from 125,507 and 131,759 units in the same period the year before. The overall auto sales (including automobiles, light trucks, vans, and jeeps) fell by 47% from January 2022 to January 2023 and by 36% from December 2022 to settle at 10,900 units, a 31-month low. This is also the pandemic's lowest sales total after June 2020 (8,800 units).
During the given time, total truck sales decreased by 58% to 2,025 from 3,492 units, while tractor sales decreased by 8,508 from 20,270 to 8,508 units.
Car sales have declined as a result of the auto industry's recent troubles. Pak Suzuki Motor Company (PSMC) was the main victim of these inconsistencies, according to the monthly sales statistics from Pakistan Automotive Manufacturer's Association (PAMA).
The Alto was one of the least popular models offered by PSMC last month with only 44 units sold. In December 2022, the carmaker sold 3,864 Altos in comparison. This is particularly intriguing because, over the previous 1.5 years, the company has sold about 5,000 Altos a month.