In the midst of a steep 55% drop in car sales, a surprising revelation has emerged – the revenues of key automakers have taken an unexpected upward turn. Recent research by Business Recorder has shed light on this intriguing scenario.

Falling Sales, Rising Profits

Despite a significant decline in sales in the country, leading assemblers such as Suzuki, Toyota, and Honda have reported a remarkable increase in revenue per unit sold. Suzuki’s revenue has surged by 76%, Toyota by 79%, and Honda by an impressive 96%. The driving force behind this financial boost is persistent price hikes camouflaged under currency devaluation.

Skyrocketing Car Prices

A closer look at the price trends reveals the core of this paradox. Average car prices assembled by these manufacturers shot up by 54% compared to the previous year. The strategy of focusing on pricier models has effectively elevated the revenue per unit sold, compensating for the dwindling sales.

High Price Tags in Local Markets

The local market paints an astonishing picture of vehicle prices. Suzuki’s 660cc Alto commands around Rs 3.0 million, while the 1000cc Wagon R and Cultus reach up to Rs 3.8 million and Rs 4.4 million, respectively. Toyota Yaris B-sedan soars to Rs 6.0 million, while the Corolla C-sedan reaches a staggering Rs 7.8 million. Honda’s City B-sedan stands at Rs 6.0 million, while the Civic C-segment sedan goes as high as Rs 10.2 million.

Economic Divide in the Spotlight

This unusual trend speaks volumes about the economy’s health and the deepening income inequality. Despite a decline in car financing accessibility for the middle class, the wealthy continue to splurge on high-priced automobiles. This situation underscores the growing economic disparity, revealing more about the overall economy than just the automotive industry.

The paradox in the automotive industry’s financials raises eyebrows and prompts reflection on the broader economic landscape. While car sales plummet, the revenues of major automakers remain surprisingly buoyant, indicating a telling story of income inequality and skewed economic priorities.