Honda And Suzuki See Massive Sales Drop in August 2022
Vehicle sales collapsed in August 2022 due to production cuts by major automakers, record inflation, and massive price hikes.
The latest data from the Pakistan Automotive Manufacturers Association (PAMA) suggests that automakers (members of the association only) sold a total of 11,645 vehicles last month, down 2% month-on-month (MoM) and a significant decline month-on-month Year-over-year decline means year-to-date (YoY ) decline of a massive 46%.
Toyota Indus Motor Company (IMC) sold 3,876 cars and saw sales increase 63% month-on-month. Honda Atlas Cars Limited (HACL) sold just 1,809 cars with a monthly decline of 44%, while Pak Suzuki Motor Company (PSMC) sold 3,954 cars and saw a massive 67% monthly drop in sales.
Hyundai Nishat Motors Private Limited (HNMPL), on the other hand, posted a strong recovery with sales of 1,929 units and recorded an 860% month-on-month increase in sales. Tucson remained the company’s bestseller.
Also Read: Honda Increases the Price for City and Civic
Production Problems
Inflationary pressures and barriers to imports are constant problems for automakers. Companies have seen massive production cuts that could lead to further sales declines in the coming months.
Automakers blame the drop on a new mechanism introduced by the State Bank of Pakistan (SBP), which requires clearance approval for CKD imports. Toyota Indus Motor Company (IMC) and Pak Suzuki Motor Company (PSMC) also issued production halt notices in September.
Given these factors, the Pakistani auto sector is in an ongoing dry spell.
Also Read: 5 Best Selling Cars of March 2022 in Pakistan
