In a startling revelation, Pakistan’s domestic auto industry finds itself navigating through one of the most challenging periods in its recent history. Despite a modest recovery post-pandemic in 2020 and decent numbers in FY22, the industry now faces a meteoric decline with no silver lining in sight.
Dismal Sales Figures
Comparing the stark figures from FY22 to the current fiscal year paints a grim picture. Sales of locally assembled cars have plummeted by a staggering 55% in FY23, followed by an additional 45% decline in FY24. The scenario is dire, with projections suggesting that the combined sales of all PAMA-member companies may not even breach the 100,000-unit mark in FY24.
The downturn is felt across all segments, with the 1300cc & above segment witnessing a 45% decline in sales. Similarly, the 1000cc and below segments have suffered declines of 54% and 32%, respectively. Even stalwarts like the 660cc Alto couldn’t escape the slump, albeit with relatively less severe repercussions.
Model-wise Fallout
The plunge in sales is further highlighted when comparing figures of prime models. The once-popular Civic & City, Corolla & Yaris, and Suzuki Cultus & Wagon R have all seen dramatic declines. Even the bestselling Alto, which accounted for 70% of Pak Suzuki sales, has seen a significant drop in numbers.
With passenger car sales plummeting by 41% compared to already dented figures from FY23, and 4x4s & SUVs facing a similar fate, the local auto industry stands at a critical juncture. Despite increased production capacity, sales have regressed to levels seen two decades ago, raising concerns about the industry’s future viability.
The Call for Change
The current state of affairs necessitates a comprehensive reevaluation of policies and strategies by policymakers and industry stakeholders. Mere optimism for improvement won’t suffice; a proactive approach is imperative to steer the industry out of its current predicament. An overhaul in thinking, planning, and execution is the need of the hour to revive Pakistan’s struggling auto sector.
As the industry braces for the biggest decline in its history, the road ahead remains uncertain. However, with concerted efforts and strategic interventions, there’s hope for a resurgence in Pakistan’s auto industry, ensuring a brighter future for all stakeholders involved.
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