Pakistan has been facing economic troubles for a while now. The country is reportedly struggling with a crisis in multiple sectors. According to recent reports, the auto sector has hit another low. Just like in October, passenger vehicle sales in Pakistan were under 5,000 in November. To put things in perspective, the Mahindra XUV700, a considerably premium SUV, sold almost 5,400 copies last month! Due to low sales and the country’s economic crisis, many manufacturers have also decided to shut shops in Pakistan. Let’s take a closer look at the ongoing crisis in Pakistan and the changing automotive landscape in South Asia.
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Only 4,875 Cars Sold in Pakistan Last Month
As per the Pakistan Automotive Manufacturers Association (PAMA) data, Pakistan’s car industry only sold 4,875 units in November 2023. In comparison, the country sold 15,432 units in November last year. This amounts to a huge drop of 68 per cent. While Pakistan has been struggling to keep up with the changing auto sector for a while, the recent numbers have raised questions about the future of the Pakistani automotive sector and whether it can overcome the current crisis and regain an upward trajectory.
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In comparison, Indian carmakers sold more units in less than half of a day (under 10 hours). According to the FADA (Federation of Automobile Dealers Associations of India) data, 3.6 lakh units of passenger vehicles were sold in November this year. This amounts to over 500 cars sold per hour across the country which is a new peak for the Indian auto sector. The rapid growth in the Indian market has also opened the door for new brands. Global brands like Tesla, GWM, and BYD are actively working to reach Indian consumers.
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Just like the Pakistan’s auto sector, the Indian sector has also been struggling with rising input costs. However, the auto industry is doing quite well as it does not have to deal with a plunging economy and currency depreciation. Additionally, the Pakistan government has imposed high taxes on the purchase of vehicles. All these factors and overall inflation have deeply hit the automotive industry in Pakistan. It remains to be seen if and when the Pakisatn sector can recover from this low phase.