As competition increases, established car manufacturers see dip in sales
Almost all established automobile manufacturers in Pakistan, known as the big three, saw their sales drop in November 2021 as the arrival of new companies intensified the competition.
Numbers show that Indus Motors’ sales drop by 8% and Pak Suzuki Motors saw a decline of 17%. Only Honda saw its sales rise by 13% primarily because it sold more units of BRV, its flagship SUV.
The drop in the sales of big manufacturers has been attributed to the availability of more vehicles available to buyers due to the arrival of companies like KIA Motors, MG Motors and Changan in the market.
People are moving away from popular car models like Honda's Civic and City, Toyota's Fortuner and Yaris, Suzuki's Wagon R, and Hyundai's Tuscon, according to market sources.
Overall sales drop
The overall automobile sale in Pakistan continued to drop for the second consecutive month in November 2021.
The recorded sales in November 2021 were 11% lower than the sales in November 2020. The biggest drop was registered in the sale of smaller, below 1000cc cars.
Pakistan Auto Manufacturers Association data shows that 18,714 cars were sold in November 2021 as compared to 21,002 in October 2021.
Experts believe expensive cars and rising oil prices have hit people's buying power.
Moreover, the State Bank of Pakistan has laid down strict conditions for car financing scheme which has also impacted the sales.
The sale of 1000cc cars showed some positive signs as 38% more units were sold in November 2021 as compared to the preceding month.
The sales of 1300cc cars fell by 517 units to 8,102 in November 2021 as compared to 8,619 in October 2021. Similarly, the sales of car below 1000cc dropped by 52% to 2,420 in November 2021 as compared to 5,092 in the preceding month.
The sales of trucks and buses increased by 10 percent. Tractors' sale dropped by 14 percent.