Sales Plummet as Car Companies Continue to Announce Huge Price Hikes
The recent price hikes have evidently started affecting car sales in Pakistan negatively. As per a recent report from Pakistan Automotive Manufacturer’s Association (PAMA), the auto sector recorded a total of 22,370 car sales in April, recording a Month Over Month (MoM) decline of 18 percent and a Year Over Year (YoY) increase of 30 percent.
HACL sold 2,629 cars, recording an MoM decrease of 28 percent, and a YoY increase of 15 percent, while PSMC sold 12,639 units and observed an MoM decrease of 16 percent and a YoY increase of 47 percent.
The sales figures of some popular vehicles in Pakistan are as follows
|Passenger Vehicle Sales (PAMA Members Only)|
|Passenger Vehicles||Units Sold in March 2022||Units Sold in April 2022||Month on Month %age Difference|
|City & Civic||3,278||2,265||-31%|
Current Market Condition
The recent price hikes have irked the ire of the government, which has summoned automakers to explain the cost structure.
In a meeting that took place yesterday, the Ministry of Industries and Production (MoIP) raised serious objections regarding car manufacturers not providing their respective cost structures. It argued that the rate of price hikes is much greater than that of the US Dollar (USD) value hike against the Pakistani Rupee (PKR).