Automobile sales jumped by a startling 49% month-over-month (MoM) in August 2023, reaching 7,579 units. On a year-over-year (YoY) basis, however, car sales fell by 36%.
Data from the Pakistan Automobile Manufacturers Association (PAMA) shows that sales of automobiles fell by 47% during the first two months (July-August) of the current fiscal year compared to the same time previous year, totaling 12,671 units.
In his research, Muhammad Abrar Polani, an auto analyst at Arif Habib Limited, blamed high auto financing costs, rising automobile prices, and consumers’ constrained purchasing capacity for the fall in YoY vehicle sales.
Polani stated in a statement to a media outlet that “vehicle sales have climbed MoM. But pricey auto financing is the cause of the YoY decrease. Additionally, automakers drastically raised prices, which discouraged consumers.
However, he emphasized that the notable increase in sales was brought about by the removal of import restrictions between July and August 2023. The result was that “automobile sales reached their highest point since March 2023.”
In addition, he continued, consumers changed their preferences towards tiny automobiles with engines under 1,000 cc in reaction to inflationary pressures, which led to a noteworthy 85% MoM growth in sales of those types of vehicles.
