Pak Suzuki Motor Company remains the market leader in the local auto sector as it extends its lead to 70% according to the official stats released for September 2019 by PAMA.
According to the details, the Pakistan Automotive Manufacturers Association (PAMA) has released its official stats for September 2019, and it shows that Pak Suzuki holds the maximum market share among the top Japanese auto manufacturers in Pakistan by a considerable lead. Note here that these stats are only for the completely knocked down units (CKD’s) and exclude all the completely built units (CBU’s) of Pak Suzuki. The other Original Equipment Manufacturers (OEM’s), including Toyota Indus and Honda Atlas, have been at the receiving end for some time now due to the economic crisis in the country. Pak Suzuki leads the race with 8157 units sold during September 2019 and occupied a market share of 70%. Indus Motor follows with 2122 units and has 18% of the market share in the local sector. Honda Atlas holds the third spot with a 12% market share as the company sold 1446 units. Have a look at the table below for market share stats:
Economic crisis on the rise:
The current economic slowdown process in the country has led to declining sales in the local auto sector. The sharp depreciation of rupee against the US dollar has massively increased the prices of the automobiles.
Furthermore, the additional taxes and duties imposed by the current government added to the misery and raised the prices even further. The prices of automobiles have gone up by more than 30% in the last year. As a result, car sales have plunged massively, and the local auto manufacturers are struggling for the past few months now. The high interest rates in the market are also another reason for the dropping sales numbers. Toyota Indus and Honda Atlas have also been forced to halt their production consistently for the past three months. Both the auto manufacturers have observed many non-production days (NPD’s) since July 2019. Due to dropping sales, the unsold inventories have piled up to thousands, and the automakers have decided to reduce their production due to low demand. Note here that all the stats are taken from PAMA.
Pak Suzuki leading the sales:
However, Pak Suzuki has not yet shut down its production plant in such severe circumstances. Perhaps it temporarily discontinued a few variants of its models last month. Nonetheless, the all-new 660 cc Suzuki Alto remains the driving force for the company’s sales in the hard times. Pak Suzuki has sold 4924 units in September. It’s followed by Cultus with 1101 units, Wagon R with 680 units, and Mehran with 466 units. The automaker also sold 403 units of Bolan, 397 units of Ravi, and only 186 units of Swift in the period under review. Overall, the company has sold 8157 units during September 2019.
Toyota Indus and Honda Atlas losing market share:
On the other hand, Toyota Indus Motor Company (IMC) only managed to sell 2122 units of its cars in this period. Toyota’s sales were led by Corolla with 1796 units and partially contributed by Hilux and Fortuner with 222 units and 104 units, respectively. The company contributed to just an 18% market share in the local sector. Similarly, the other OEM Honda Atlas sold only 1446 units during this period and held a 12% overall market share. As many as 763 units of Honda City were sold by the company, followed by 605 units of Honda Civic. BR-V contributed to the overall sales with just 78 units. Overall, the total number of cars sold by these three OEM’s during September 2019 was 11,725.
Year to year comparison of market share:
On a year to year comparison, Pak Suzuki held a 51% market share during the same period last year, with 9900 units being sold. Toyota Indus sold 4933 units and had a 26% market share, whereas Honda Atlas was holding a 23% market share with 4512 units during September 2018.
The comparison of market share in September 2018 and 2019 show that Pak Suzuki has gained a whopping 19% market share, whereas the Toyota Indus and Honda Atlas both have lost market share by 8% and 11% respectively. See the chart below for a detailed comparison:
Pak Suzuki holds its strong presence nationwide due to its vast dealership network. According to the details, Pak Suzuki Motor Company has more than 165 dealerships in more than 97 cities across the country. This particular reason is one of the major contributors to the overall sales of the company in the country. The cars produced by Pak Suzuki also offer the best resale value, which makes it the first choice for the consumers. Also, it has long been the only auto manufacturer in the entry-level segment in the country with no other option for the consumers. As for now, several other new entrants have paved their way through the local sector with their entry-level and mid-range hatchbacks. KIA has also recently launched its 1000 cc hatchback Picanto in the local market, which is a direct competitor of Pak Suzuki cars. Moreover, the 800 cc United Bravo is also available in the market now, and Prince Pearl is also expected to be launched soon in the country. However, competing with Pak Suzuki would need some serious infrastructure from other new players in the market. Pak Suzuki being an established automaker in the country, also has a very strong after-sales presence nationwide.
The government, on the other hand, needs to take necessary measures in favor of the local auto sector for its revival. Several additional taxes, such as Federal Excise Duty (FED), which is imposed on all types of locally manufactured cars, should be waived off. Currently, FED is charged at 2.5%, 5% and 7.5% for different segments of cars. What are your thoughts on the current market situation? Let us know in the comments section below and stay with PakWheels for more statistical updates related to the automobile industry.