- Pakistan’s automobile industry is facing a severe slump due to various factors, such as the weak economy, the low purchasing power of the people, and supply chain disruptions.
- Only 4,875 cars were sold in Pakistan in November 2023, a sharp drop of 68% from the same month in 2022, when 15,432 cars were sold.
- Pakistan’s car market is lagging behind India’s, which sold 2.88 lakh cars in November 2023, with Maruti Suzuki alone selling 1.34 lakh units.
New Delhi: Pakistan’s automobile industry is going through a tough time, as the sales of cars have plummeted by 68% in November 2023 compared to the same month in 2022. According to the data released by the Pakistan Automobile Manufacturers Association (PAMA), only 4,875 cars were sold in the country in November 2023, while 15,432 cars were sold in November 2022.
The decline in sales is attributed to various factors, such as the country’s weak economy, which has been hit by inflation, devaluation, and debt. The purchasing power of the common man has also decreased, making it difficult for them to afford cars. Moreover, the automobile industry has also faced supply chain disruptions due to the global shortage of semiconductors, which are essential for producing cars.
The slump in the car market has affected the performance of the major car manufacturers in Pakistan, such as Pak Suzuki, Indus Motor Company Limited, and Honda Atlas. Pak Suzuki, which is the largest car maker in the country, has suffered the most, with a year-on-year decline of 72% in sales. Indus Motor Company Limited, which produces Toyota cars, has also registered a decline of 71% in sales. Honda Atlas, which makes Honda cars, has seen a decline of 49% in sales.
In contrast, India’s automobile industry has been booming, especially in the month of November 2023, which was marked by festive celebrations. The Indian car market sold 2.88 lakh cars in November 2023, which is more than 59 times the number of cars sold in Pakistan in the same month. India’s largest car manufacturer, Maruti Suzuki, alone sold 1.34 lakh units, more than 27 times the total number of cars sold in Pakistan in November 2023. More than 80,000 new vehicles were registered in Delhi, the capital of India, of which about 18,000 were cars. This means that more than four times the total number of cars sold in Pakistan in November 2023 were sold in Delhi alone.
The stark difference between the two neighboring countries’ car markets reflects the divergent trajectories of their economies and their automobile industries. While India is emerging as a global leader in the automobile sector, Pakistan is struggling to keep up with the changing demands and challenges of the industry.