Car sales plunge 43pc on import curbs

The car sales in Pakistan registered a sharp decline of 43 per cent during the first seven months of the current fiscal year.

As per the data shown by the Pakistan Automotive Manufacturers Association (PAMA), car sales plunged by 65% in January 2023 from a year earlier amid a shortage of raw materials, low purchasing power.

As compared to the past year, car sales and production in January plunged to 5,723 and 6,021 units from 13,758 and 13,780 in December 2022.

During the first seven months of FY23, car production and sales registered a steep decline of 38.6pc and 43pc to 77,101 and 74,933 units from 125,507 and 131,759 units in the same period last year.

The report shows that Pak Suzuki, which holds the biggest share in the market, saw its sales plummet 74% month-on-month in January 2023.

Indus Motor reported an increase of 26% month-on-month to 3,570 units followed by Honda Atlas Cars at 2,704 units in January 2023.

It is pertinent to mention here that Pakistan has moved to curb dollar outflow through restrictions on imports.  The country’s foreign exchange reserves are at a critical level of $2.92 billion – lowest since February 2014.