The automotive sector in Pakistan is currently experiencing one of the worst crises due to a variety of factors including poor economic management, currency depreciation, and import restrictions, which has resulted in a significant drop in car sales in Pakistan during July 2022.
According to the details, Pak Suzuki Motor Company (PSMC) had one of the lowest sales, selling fewer than 6800 units in July 2022, a drop of more than 60% month on month. Except for the Suzuki Alto, which sold 4,600 units, the automotive company was able to sell less than 500 units of any car.
Toyota Indus Motor Company (IMC) also reported one of the lowest car sales in Pakistan over the last two years, with a 60% drop in July 2022. During the previous month, the company sold only 2,375 CKD units, including Corolla, Yaris, Fortuner, and Hilux.
The automotive company was unable to keep up with sales due to a variety of factors, including difficulties obtaining Letters of Credit (LCs) from the State Bank of Pakistan for the import of Completely Knocked Down (CKD) kits. In addition, IMC has announced a 100% refund with a markup to their customers in the event of order cancellation due to failure to meet delivery timelines.
Hyundai Nishat Motors is in the same boat as everyone else, with one of Pakistan’s lowest car sales in July 2022, a drop of 89%. According to the details, the company sold only 104 Hyundai Tucsons in July 2022, while none of its sedans were sold. However, the company managed to sell 213 units in the previous month.
One of the possible reasons for one of Pakistan’s lowest car sales in July 2022 is that companies are having difficulty importing the necessary parts and raw materials due to restrictions imposed by the State Bank of Pakistan (SBP), which has resulted in these automotive companies observing non-production days.