As per the data provided to us by Pakistan Automotive Manufacturers Association (PAMA), it has been found on the latest statistics that car sales in Pakistan dropped by a whopping 41 % to  10,636 in August from 17,977 units sold during the same period last year, which shows the effect the Khan governance has had on the Automobile industry in Pakistan. Car Sales in Pakistan drop by 41% in August.

In the first two months of Financial Year 19, passenger cars sales have dropped from  31 percent to 27,108 units compared with 39,354 units sold during the same period last year. August sales were down by 35 percent to 16,472 units compared to July.

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Analysts have made a rather simple but non the less spot on judgement as they believe that the relative increases in prices of pretty much all models of cars which were operating in Pakistan in FY19 had a significant impact on sales.

One analyst on the occasion stated that when he compared the numbers with July 2019, August 2019 had fewer working days because of long Eid holidays, which was also one reason behind a decline in the number of sales, which does make sense honestly.

“With the imposition of federal excise duty on all vehicles, the prices have increased further, resulting in a decline in sales” , said one analyst.

It is also worth mentioning over here that the government has already  imposed 2.5 percent Federal Excise duty on 1000cc and below engine capacity vehicles, 5.0 percent FED on vehicles between 1001 and 2000cc engines, and 7.5 percent FED on cars with above 2,000cc engines.

In August, sales of cars with engine capacity above 1300cc dropped by an astonishing 63 percent to 2,997 units as compared with 8,028 units sold during the same month in 2018 which pretty much tells us the story about the Pakistani Automobile industry. Toyota is one brand who has had its sales decline this year, according to the information the sales for  Corolla decreased by 59 percent to 1,727 units and in August 2018 that number was 4,204 units, Honda on the other hand also faced similar circumstances, sales of Honda Civic and City went down by 68 percent to 1,106 cars from 3,469 units, compared to the same month last year.

One dealer on the topic said that the future booking of cars has also seen a major decline, which will also have a negative impact over sales in coming months as well. During this period, 1000cc cars – Suzuki Cultus and Suzuki Wagon R also saw a drop in sales by (and you won’t believe this)50 percent to 1,934 units against 3,830 units. Rough times here in Pakistan.

Moving on to cars which were under 800cc category, sales increased by 19 percent to 4,195 units against 3,531 cars in August last year because of the sales of the new Suzuki Alto, which saw a sale of 3,435 units in August 2019. However, Alto sales also dropped by 21 percent in August as compared with 4,584 units sold in July 2019. Suzuki’s discontinued popular car Mehran saw a decline in sales by 83 percent to 389 units only against 2,318 units during the same period last year. So people that is current crisis of Pakistani in terms of the Automobile Industry, we hope to see improvement but the question is more about How then when.


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