Even with no well-thought financial strategies of the incumbent government, car companies are making hefty profits. After Pakistan Suzuki Motor Company (PSMC), another car maker Toyota Pakistan also posted a profit with dwindling sales.
Toyota Indus Motor (IMC) reported a profit of Rs. 3.21 billion for the first quarter of this year, that concluded on March 31. As per the reports, the company faced a slump of 37.1% compared to a profit of Rs. 5.11 billion earned in the correspondent time of last financial 2033-23.
The automaker posted a jump of 142% in quarter-over-quarter (QoQ) profit. Reports have revealed that IMC has observed a profit after two months of consecutive loss in FS’22.
In contrast, IMC’s sales declined by 29% making a profit of Rs. 48.19 against 68.2 billion. And the reason behind the downtrend in sales is a steep rise in inflation combined with imports curbs which have nudged the customer for not paying hefty amounts to buy over-priced new cars.
Highlighting month-on-month sales, car makers witnessed an increase of 54% last month. Mind you, the local auto industry has reported this rise after a continuous down of several months.
Car Sales Improved by 54 % Last Month
Pakistan Automotive Manufacturers Association (PAMA) issued a car sales report for March’23. As per the PAMA report, the car sales clocked-in at 9,351 units against 6,072 in February – increased by 54% MoM. Coming to year-on-year sales, observed a decreased of 66%, selling 27,202 vehicles in the corresponding period of last year.
Meanwhile, Honda Atlas car sales posted a new low – dropped by 49%, selling 835 units in March compared to 1,636 units in February. (MoM decline: 49%)
Coming to Pak Suzuki Motors Company’s sales marked a surprising increase of 475%, surpassing fellow Toyota and Honda. The company sold 5,628 cars last month, contra 978 cars in February. (MoM growth: 475%)
Hyundai Nishat sales reported of down 34%, selling 836 units last month compared to 1,271 units in Feb’23. (MoM growth: 81%)
What do you think about the sales and profit scenario of the car companies? Drop your thoughts in the comments.
That’s the main reason, why our car market is keep getting old cars…
Thus making our market ridiculous with a merely 200 000 to 250 000 sales / year.
We reap what we sow.
And overall no Barakah
I think its time Pakistan should ask these car assemblers to shut down and go home. 40 years into business and we are still assemblers. On the other side, Morocco who started car manufacturing in around 2010 is manufacturing 400k plus vehicles and exporting those for billions of dollars.
Its true many people will loose jobs in Pakistan but the point is our governments who have to take loans in Dollars have to save these kind of businesses giving them subsidies at many points which at the end is actually coming from the loans Pakistan take. And still these businesses are no worth for the country. Government should allow import of cars. On cars we it should be 5-10yrs old and on jeeps 5-15yrs old. Brand new or less than 5yrs old cars cost more so we have to send more dollars out. But if we go for older models they will be cheaper which means less dollars go out. And still those JDMs even 5yrs old are much better and well equipped than our local cars.
If the government does not decide to give tough competition to these car assemblers, they will never do any thing, they will never do transfer of technology to Pakistan. They are earning hefty profits even doing assembly of cars why the hell they will even think of doing extra efforts going for manufacturing.
We should look at countries like Vietnam who back in 2000 decided to reduce import duties on all products from 50% to 2% only. That was the day when Vietnam actually was on track and today they are producing electronics which once were being done in Japan.