FY2019-20: Car sales face a sharp decline of 42pc in July

Sales of bus however improved by 7.3pc to 118 units in July.


For the auto sector, the first month of 2019-20 started off to be quite disappointing with 23% and 42pc decrease in car production and sales decline to 16,472 and 10,968 respectively.

The main reason for this decline in manufacturing was the shut down of production by Honda Atlas Cars from July 12 to 21, besides Saturday as it is a holiday for the previous few months. Makers of Toyota Cars – Indus Motor Company (IMC) did not produce vehicles for eight days besides two Saturdays off, taking the shut down of IMC plants to 10 days in July.

In August, due to four official Eid holidays, the plant was shut down for a week from 12 to 17 August, with a Saturday off. This also dipped down sales and production. However, the buyers are reluctant in purchasing new vehicles due to the devaluation of rupee against the dollar and the imposing of FED (Federal Excise Duty). This reluctance and hesitation in purchasing have forced companies to decrease production in the previous month.

As per the figures of PAMA (Pakistan Automotive Manufacturers Association), Honda Civic and City, the production and sales decreased from 49pc and 68pc to 2,371 and 1,452 respectively in the month of July. Just like that, Toyota Corolla’s volume and output decreased by 39pc to 2,827 and 57pc to 1,981.

PSMC (Pak Suzuki Motor Company) was yet to announce any cut down in production, still, its production and sale of Swift came at 384 and 174 units, down by 28pc and 64pc. Cultus’ output jumped by 28pc to 2,293 units but the volume suffered a drop of 27pc to 1,208 units. WagonR production and sales fell by 15pc and 70pc to 2,767 and 843 units.

Orders decrease as Suzuki Mehran’s production is closed down:


With Suzuki Mehran’s production’s closing down, sales from earlier orders decreased 89pc to 394 units in July, Bolan’s output and volume dropped by 26pc and 75pc to 1,367 and 332 units respectively. Alto600cc production and sales during the previous month were at 4,463 and 4,584 units.

The segment of Vans, light commercial vehicles and Jeeps was also red with the 66pc fall in sales of Toyota Fortuner to 74 units while Honda BR-V plunged to 35pc to 242 units. Followed by 30pc and 48pc decrease in Suzuki Ravi and Toyota Hilux sales to 840 and 358 units respectively. JAC’s volume also decreased by 9pc and 51 units in July.

Sales of buses improve by 7.3pc:

Sales of bus however improved by 7.3pc to 118 units in July, despite the sales of Hino falling to 17pc to 39 units while Isuzu’s jumped 44pc to 25 units despite its production being zero during the ongoing month. Master bus’ sale declined 4pc to 23 units.

Trucks, which were a trend in Fiscal Year 19, started the first month of this Fiscal Year with 30pc decline in the first month of Fiscal Year 20 to 252 units because of 53pc, 51pc and 3pc decline in Hino, Master, and Isuzu volumes to about 101, 54 and 252 units respectively.

Sales of tractors, that indicates the country’s agriculture indicator, showed a mixture of trends in July. The Fiat sales went up by 38pc to 1,122 units while sales of Massey Ferguson decreased 36pc to 1,938. Amongst two-wheelers, Suzuki and Yamaha volume that grew largely in FY19 started 2019-20 with 15pc and 16pc decrease to 1,614 units and 1,817 units in July.

Sales of Honda – the leader of the market – declined by 11pc to 20,005 units in July, from 90,009 in the same time period, last year. United Auto Motorcycle’s sales stood at 22,288 units last month but 25,508 units in July last year.

Sazgar and United three-wheelers sales declined to 585 and 815 units, versus 1,468 and 1,073.

Also See: Pakistan Eyes Eco-Friendly Electric Cars To Be Sold Within The Country

What are your views on this? Share with us in the comments bar below.

Featured Content⭐