The automobile industry of Pakistan has faced some seriously tough times during 2019 due to the economic slowdown process in the country. There was a major drop observed in the value of Pakistani Rupee against the US dollar in the past year which adversely affected the automobile prices. As a result of other additional taxes and duties imposed by the government, the prices of cars surged insanely during this period thus declining the sales in the auto sector. The consumer’s buying power received a major blow that left the automakers struggling to sell their units. Consequently, the unsold units have piled up to thousands forcing the companies to reduce their production.
The detailed sales stats of each month of 2019 indicate a significant drop in sales as we compare them with their corresponding period last year. Toyota Indus is one of the largest Japanese auto manufacturers in the country that also went through a decline of 25.94% in its overall sales of the locally manufactured vehicles during the first 11 months of 2019 as compared to the same period last year. Toyota Corolla is the driving force of the company’s overall sales that also received a setback due to a considerable fall in its sales during this period. The automaker managed to sell 38,427 units of Corolla during the January-November 2019 period as compared to 49,858 units in its corresponding period last year. It shows a reduction of 22.92% in the sales of Toyota Corolla in the local market. It is worthy to mention here that the major drop in sales was observed at the beginning of the ongoing fiscal year 2019-20 in July. The other models of Toyota Indus include Hilux and Fortuner that also turned out hard to sell in the market during 2019. The company sold 4352 units of Hilux and 1832 units of Fortuner during the first 11 months of 2019 as compared to 6735 units and 3648 units respectively during the same period last year. The sales of Hilux plunged by 35.38% while Fortuner was most affected during this period as its sales went down by 49.78%. Note here that all the stats discussed in this blog are taken from the website of PAMA. The complete details of Toyota Indus car sales during 2019 as compared to 2018 are given below:
This year kicked off much better than the last year for Toyota Corolla as the company sold 5353 units of the car in January 2019 as compared to 4243 units in the same period last year. However, the overall scenario changed with the beginning of the fiscal year 2019-20 in July. The company’s sales for Corolla went down drastically during the month of July 2019 and the trend has continued since then. The sales decreased from July due to the sky-rocketing prices of Corolla due to the sharp depreciation of rupee against the US dollar and the imposition of FED. Toyota Indus only managed to sell 1981 units of Corolla in July 2019 as compared to 4566 units in its corresponding period last year. In the July-November 2019 period, the sales of Corolla remained declined by more than 55% on year on year basis as shown in the table below:
Apart from June 2019 and November 2019, the rest of the months witnessed a massive decline in the sales of Toyota Hilux on year on year basis. The first half of 2019 was much worse for Hilux as compared to the second half of the year as compared to the same period during 2018. The best-selling month was also June 2019 when the company sold 747 units of Hilux. Overall, the automaker sold 4352 units of Toyota Hilux during the January-November period of 2019, down by 35.3% as compared to 6735 units in 2018. Have a look at the complete comparative stats of Toyota Hilux:
Toyota Fortuner also didn’t perform quite well this year particularly the first half of 2019 in terms of comparison whereas a very few units were sold in the second half. During February 2019, the automaker sold 332 units of Fortuner, 80.4% more than its corresponding period last year. Perhaps it was also the highest-selling month for Fortuner during the 11 months of 2019 so far. Since then, the compact SUV Fortuner has continuously faced a decline of more than 50% in its sales on year on year comparison. The overall sales of the vehicle plunged by 49.7% in 2019 as the company sold only 1832 units of Fortuner as compared to 3648 units during the same period last year.
Contribution of each model in the overall sales of Toyota Indus:
As we mentioned earlier that Corolla is the highest-selling vehicle of the auto manufacturer in the local setup, it contributed 86% of the overall sales of the company during 2019, up by 3% as compared to its previous year. On the other hand, both Hilux and Fortuner lost a marginal share of its sales during this year.
Have a look at the pie-graph below for complete detail of the sales distribution of Toyota Indus cars in the market during 2019 as compared to 2018.
To boost up its sales, the company also introduced several promotional campaigns but the overall scenario is yet to turn around. Moreover, the automaker is also planning to discontinue the 1.3L variants of its popular Corolla soon. It will be replaced by Toyota Yaris which is already seen multiple times on the roads doing test rounds. Also, the company is optimistic that the sales will revive in 2020 and the auto sector will gain its momentum by the start of the next fiscal year. Currently, Toyota Indus is operating at less than 50% of its production capacity due to low demand in the market and piled-up unsold inventories. The buying trend towards the last couple of months also remains on the lower side since the consumers wait for the next year. However, 2020 seems to welcome the consumers with another unjustified price hike as it has already happened in the case of Pak Suzuki. Will the auto sector’s performance graph rise with the start of 2020? The role of government will be important in determining the success of the local auto industry. The prices of automobiles need to be controlled by a regulatory body to create any chance of sales boost-up in 2020. Let’s hope the change of year will change the fortunes of the automobile industry of Pakistan.
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