November 2023 witnessed a dramatic 68% plummet in passenger car sales, sending shockwaves through Pakistan’s automotive landscape. The Pakistan Automotive Manufacturers Association (PAMA) data paints a grim picture, indicating a seismic shift in the industry dynamics.

Year-on-Year Plunge

The heart of the matter lies in the staggering 68.41% year-on-year drop in passenger car sales. Last month’s sales tumbled to a mere 4,875 units, a stark contrast to the 15,432 units sold in November 2022. It’s a dip that demands attention and raises eyebrows across the nation.

Month-on-Month Change

While the year-on-year stats sent ripples, the month-on-month scenario shows a marginal uptick of 0.52%. November managed to surpass October by a whisker, reaching 4,875 units compared to the previous month’s 4,850 units. These numbers are a flicker of hope amid the storm.

Car Sales and Production Paradox

Interestingly, the total production of passenger cars in November soared by 10.42% on a monthly basis, hitting 4,271 units. However, a stark reality check unfolds when viewed through the lens of the previous year, witnessing a 72.46% year-on-year production slump compared to November 2022.

Car Sales in Fiscal Year 2024

Zooming out, the broader picture unveils a 53.30% year-on-year freefall in car sales for the initial five months of fiscal year 2024. A mere 25,746 units rolled off the lots, depicting the challenges besieging the auto industry. High inflation, currency woes, political uncertainty, and supply chain disruptions cast a long shadow.

Currency and Import Hurdles

Despite some relief in import restrictions, the auto sector grapples with the aftermath. Essential parts still face restrictions, with a shortage of dollars crippling the import of crucial components. Honda and Suzuki, among others, experienced temporary plant shutdowns, adding to the industry’s woes.

Shifts in Car Sales

Delving into the data, the ‘Below 1000cc’ category emerges as the sales beacon, with 2,113 units finding new homes. Suzuki Alto takes the lead with 1,944 units, followed by Suzuki Bolan at 169 units. The ‘1300cc and Above’ category secures the second spot with 2,033 units, led by Honda Cars (Civic & City) at 912 units and Toyota (Corolla & Yaris) at 693 units.

As truck sales dip by 18.47% month-on-month and motorbike/three-wheeler sales witness a 20.36% year-on-year drop, the auto industry stands at a crossroads. The cumulative production and sales for the first five months of fiscal year 2024 show a 12.31% and 11.98% year-on-year decrease, echoing the industry’s struggle.