Pakistan leading automobile companies face yet another blow

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Pakistan leading automobile companies face yet another blow

ISLAMABAD - Pakistan leading automobile companies face yet another blow.

The Pakistan Automotive Manufacturers Association (PAMA) has published the data regarding the sales of vehicles for the month of December 2019 and according to the data, it was another period of decline.

This follows the trajectory we have seen for the whole of last year and the current fiscal year, where in the first five months of the fiscal year, the overall sales have dropped by 44% as compared to the first five months of the fiscal year 2018-2019. ------------------------------

The slide in sales had been attributed mostly to the devaluation of the rupee coupled with the prevailing economic conditions, which had forced the carmakers to increase their prices multiple times.

Another reason that had been given was the FBR’s drive to increase the tax base which had led to the non-filers running away from buying cars. ------------------------------

As you can see from the table below, there has been a drastic fall in sales both on a month-to-month basis and year-on-year basis across the board: *Company * *Dec-19* *Dec-18* *YoY%* *Nov-19* *MoM%* Honda 1,005 2,367 -57.5% 1,303 -22.9% Toyota 2,332 5,324 -56.2% 2,640 -11.7% Suzuki 8,732 11,732 -25.6% 5,846 49.4%

Interestingly, Honda was the worst performing out of the big three with a 57.5% decline on a yearly basis and 22.9% on a monthly basis. ------------------------------

Toyota was slightly less bad with an 11.7% decline on a monthly basis. One of the reasons for this is that the company offered multiple special offers and managed to sell a few more units than expected.

Suzuki was the biggest surprise because while the company saw a decline in sales on a yearly basis but on a monthly basis, the company saw a significant increase in sales by 49.4% when compared to November 2019.

Economy