Car rates

Rising prices and high interest rates; car sales drop 50%

Car sales fell 50% to 10,377 units in July from 20,669 units in the corresponding month last year due to rising car prices and high interest rates.

The Pakistan Automobile Manufacturers Association (PAMA) has released data showing that sales of passenger cars, trucks, jeeps, pickups, tractors as well as two-wheelers have dropped dramatically to almost half over the past of the period considered.

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According to auto analysts Topline Securities, production issues, rising prices and declining purchasing power caused non-PAMA car sales to drop 59% to around 14,000 units. He also said that the factor of fewer working days due to the Eid-ul-Adha holiday has also affected car sales.

Sales of 1,300cc and larger cars fell 39% to 4,463 units while the number remained at 7,265 in the same period last year. The report says sales were down 52% on an annual basis.

According to the details given, 2,408 units of Honda Civic and City; 321 units of Suzuki Swift; and 1,734 units of Toyota Corolla and Toyota Yaris were sold. 943 units of 1000cc cars were sold while 4971 units under 1000cc were sold in July this year.

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In July, sales of trucks and buses fell to 379 units from 601 units in July 2021. 1,506 Jeeps were sold from 4,250 and 2,254 tractors from 4,332 were sold. Rickshaws and motorcycles increased from 145,197 last year to 94,162 units.