| Welcome to Global Village Space

Thursday, February 15, 2024

Pakistan: Local car industry records 62% growth in fiscal year 2021

Coming out of the Covid-19 crises, Pakistan's economy is on the rise, indicated by its now thriving local automobile industry that has shown remarkable recovery in the fiscal year 2021.

The Pakistan Automotive Manufacturers Association (PAMA) has revealed sales numbers of the local automotive industry. During the outgoing fiscal year 2021 (FY21), the local car industry has recorded a 62% Year Year basis (YoY) growth to 181,397 units compared to 111,965 units in the previous year.

The reason behind this exceptional performance of the cars and motorcycle industry is the prevailing low-interest rates, economic recovery, and strong growth potential, and rising per capita income.

The market had been unstable in the 2010-2014 period of time, registering a sharp fall in 2013, after which it grew steadily in the following years.

In 2017 the market was sustained by robust internal demand, reaching 247.330 sales (+18.3%), followed by the current record in 2018 at 264.442 (+6.9%).

Read More: MG ZS EV’s price plunges as the new auto policy comes into effect

However, in 2019, the market imploded due to new tax introductions, making new car imports negligible. As a result, the Full-year ended at 192.814 units sold, losing 27.1% from the previous year.

2019 started with a very negative trend (-42.6%); the market kept collapsing in March as the virus struck. The sharpest drop in sales this year was in April, when sales declined by 99.6%.

Local car industry

In the following months, the market recovered and started growing again in August when sales rose by 36.2%. For the rest of the year, double-digit growth was maintained, with the most significant growth registered in November (+45.5%).

Due to the COVID-19 pandemic, sales fell in 2020. 127.939 units had been sold, reporting a decline of 33.6% compared to 2019. 2021 started positively for the Pakistan market; in Q1, 56.031 units have been sold, reporting a 73.3% increase in sales compared to Q1 2020.

Indus Motor Company, producer of Toyota brand cars in Pakistan, reported a stunning 12%YoY basis growth in their sales to 57,236 units in FY21 compared to sales of 28,378 units reported in FY20. Hyundai reported the highest growth in sales by 1,634% Year on Year basis (YoY) to 5,790 units in FY21 compared to merely 334 units sold in FY20.

Read More: MG to lead EV market as it is set to offer most affordable EV

Pak Suzuki Motor Company’s market share dropped by a massive 10% to 49% in FY21 from 59% in FY21, whereas, Market Share of Indus Motor Company and Honda Atlas Cars increased to 32% and 16%, respectively.

Atlas Honda Limited reported the highest growth in sales of 48%YoY to 1,292,096 units as against the sales of 873,902 units reported in FY20, followed by Pak Suzuki Motorcycle company with 44% YoY growth in sales to 24,851 units in FY21 compared to sales of 17,301 units reported by the company in FY20.