Pakistan’s Car Sales Dive 75% in May 2020 – Detailed Report

The COVID-19 pandemic continues to hammer the automotive industry of Pakistan. The car sales plunged by 75% in May 2020 as compared to the same period last year. The dive is mainly due to shut down of the sector to contain the deadly virus in the country. However, after easing of restrictions, the automakers managed to sell a modest quantity of vehicles as compared to virtually zero sales in April 2020. Two of Pakistan’s most prominent manufacturers, Indus Motors and Honda Atlas Cars, opened on May 19, This meant they only had 13 days of the operation in last month.

Latest monthly report by Pakistan Automotive Manufacturers Association (PAMA) shows the production and sales data of May 2020 and cumulative year, showing a slightly better picture of the industry as compared to April 2020.

Passenger Cars: 

According to the report, only 3,800 cars were sold in May 2020 as compared to 15,428 units in the same month in 2019. During the first 11 months of the fiscal year (July-May), car sales dropped to 54 percent to 89,130 cars as compared to 192,863 units sold during the corresponding period last year. Earlier, PAMA reported that Toyota, Honda, and Suzuki did not sell a single unit in April 2020.

The association report stated that Honda sold 263 Civic and City cars in May 2020 as compared to 2,564 units in May 2019. Toyota sold 294 Corolla and 167 Yaris cars last month as the company sold 4,069 Corolla units in May 2019. It is essential to mention that Toyota introduced its all-New Yaris in March but could not ship it to potential customers due to nationwide lockdown.

Coming to Suzuki, the company has sold 78 Swift, 922 Cultus, 386 Wagon R and 386 Bolan cars last month. In comparison, the company sold 425 Swifts, 2,546 Cultus, 2,765 Wagon R and 1,270 Bolan in May 2019. 

The sale of 1300cc and above cars has dropped by 89 percent to 802 cars in May 2020 compared to 7,058 units sold during the same month last year. The sale of Toyota Corolla dived 93 percent to 292 cars against 4,069 vehicles sold in May last year. Meanwhile, the sale of Honda City and Civic plunged to 90 percent to 263 units from 2,564 cars, compared to the same period previous year.

Coming to Suzuki, the company’s Swift saw a sale drop of 82 percent, while Cultus and Wagon R, witnessed a decline of 75 percent of in sales as compared to May 2019.

Following chart explains the sale trend of May 2019 Vs May 2020:

Trucks and Buses: 

The report stated that Isuzu sold 56 trucks in May 2020¸ while Hino sold only three vehicles last month. Meanwhile, no buses are sold last month, just like April 2020. The trucks and buses saw an overall drop of 47 percent during the current fiscal year with sale of 3,380 units from 6,351 vehicles during the same period last year.

Jeeps, Pick-ups, and Tractors:  

According to the report, 77 jeeps, 650 pickups, and 1,849 farm tractors are sold in last month. During the current fiscal year, sales of Jeeps have seen a 33 percent drop to 3,217 units from 7,009 vehicles during the same period last year.

Bikes and 3-Wheeler: 

The report stated that 38,167 two and three-wheeler are sold during May 2020. The sale is considerably low as compared to 154,782 units in May 2019. In the current fiscal year, the sales of bikes and rickshaws have seen a drop of 27 percent to 1.22 million units from 1.64 million units sold last year.  

Following is Year-to-Year sale comparison: 

Reason Behind Slow Down: 

Due to excessive government taxes and FED, the automobile sector was already seeing a massive slow down. The pandemic of coronavirus, followed by lockdown in the country, caused a total shutdown of the industry in March 2020. Due to the closure of manufacturing and assembly plants, the dealership of these companies also shut down their businesses. This led to a total halt of sales and purchase of cars, bikes and other automobile vehicles. However, the experts are hopeful for an increase in sales as the government has eased restrictions of COVID-19.

Recommended for you: Toyota Indus Motors Shuts Down Its Plant In Pakistan