Flash Reports

Pakistan Car Market Statistics. Top Brands and Models ranking.

Accordingly with data released by P.A.M.A. (Pakistan Automotive Manufacturers Association) light vehicle sold in October 2013 in the country were 9.969, down 36.9% from last year, the fourth loss in a row.

Year to date sales were 119.792, down 17.7% from year ago, thanks to a first half ended in black and a second half so far really awful.

Please consider this data refer to sales of local produced vehicles not including imported, for which no data are available. In 2012, Pakistan imported over 55.000 cars, up 162% from previous year figure of 21.000 units. However, it is estimated that over 90% of these were pre-owned vehicles.

The government, not happy of a so negative trend, is looking to introduce a new auto policy that would hike tariff barriers in order to further encourage local production, with potential very negative effect of total market volume.

Indeed, Pakistan’s government is putting the finishing touches on its new five-year Automotive Industry Development Policy II. Its aim is to open up the auto industry to more competition, but Pakistan wants to do so with two-pronged strategy that would encourage investment into production by offering to protect the market with tariff barriers.

It is a strategy that has worked in other countries such as Russia, helping them to attract direct investment. But unless Pakistan’s business environment improves to make such investment easier, the new import barriers could end up restricting competition instead.

The country’s population has quadrupled over the past five decades, to 180 million people, but car ownership stood at just 12.6 per 1,000 inhabitants in 2012, and is unlikely expand rapidly in the near future.

Domestic production, which consists of local assembly of vehicles from imported parts and kits, has capacity of only 250,000 vehicles per year. However in 2012 sales were only 176.000 and this year are projected around 150.000 with only 60% of production capacity covered.

Actually only 8 automotive players operate in the market with just few models available on sales with really not existing choice for consumers. The government and the few upper-income consumers who can afford to purchase a car are concerned that this lack of competition translates into low quality, high prices and a disregard for customers.

Indus- the local Toyota joint venture – has jacked up its prices twice since August, and Honda also implemented price increases more recently. Moreover, most carmakers demand that their customers pay for their cars before delivery, to protect the makers against high inflation and the risk of non-payment. Companies blame continued losses in an environment of falling sales as well as local rupee persist to be depreciated against the US dollar.

Existing players also complain about policy uncertainty, bureaucratic delays, political instability, lack of security and macroeconomic factors, such as inflation and a weak rupee. Another major threat to domestic automakers as well as potential new entrants may come from closer economic ties with India.

The two countries are starting to expand trade and in mid-November India challenged Pakistan to extend to it the Most Favored Nation status on an expedited basis. At the same time, automotive companies are urging Pakistan to raise tariffs on imported vehicles to match India’s protectionist policies.

Indeed, Indian exports are a threat to all Pakistani producers given the amount of foreign investment going into Indian car manufacturing, from foreign and domestic players. Given the difficult political, economic and security situation in Pakistan, cheaper Indian-made vehicles could provide stiff competition to domestically assembled ones. That would cut car prices for Pakistani motorists, though it would do little to bolster the country’s auto industry.

In the table below, please find the All Brands sales data and ranking updated at October 2013:

Rank Oct

Rank Sep

Rank Ytd

Brand

Oct

Ytd 2013

FY 2012

I Half 2013

Sep 2013

Oct 2013

Ytd 2013

1

1

1

Suzuki

5.556

63.927

58,8%

53,1%

51,7%

55,7%

53,4%

2

2

2

Toyota

2.595

34.059

30,2%

29,7%

24,7%

26,0%

28,4%

3

3

3

Honda

1.720

21.151

9,5%

16,6%

23,0%

17,3%

17,7%

4

6

7

Hyundai

47

47

0,0%

0,0%

0,0%

0,5%

0,0%

5

5

5

Nissan

32

95

0,0%

0,0%

0,3%

0,3%

0,1%

6

4

6

Isuzu

19

90

0,0%

0,0%

0,3%

0,2%

0,1%

In the table below, please find the ALL Models data and ranking:

Rank Oct

Rank Sep

Rank 2013

Model

Oct

YTD Oct

I Half 2013

Q3 2013

Oct 2013

Ytd 2013

1

2

1

Toyota Corolla

2.266

29.553

26,0%

22,2%

22,8%

24,7%

2

1

2

Suzuki Mehran

1.972

26.758

22,7%

22,4%

19,8%

22,4%

3

4

3

Suzuki Cultus

1.258

11.725

9,2%

10,5%

12,6%

9,8%

4

5

4

Suzuki Bolan

1.082

11.613

9,5%

9,9%

10,9%

9,7%

5

3

5

Honda City

1.004

11.393

8,6%

11,5%

10,1%

9,5%

6

12

7

Suzuki Ravi

852

8.939

8,0%

5,9%

8,6%

7,5%

7

6

6

Honda Civic

716

9.764

8,0%

8,8%

7,2%

8,2%

8

7

8

Suzuki Swift

361

4.733

3,8%

4,4%

3,6%

4,0%

9

8

9

Toyota Hilux

299

3.577

2,7%

3,7%

3,0%

3,0%

10

12

13

Hyundai Shehzore

47

47

0,0%

0,0%

0,5%

0,0%

(596)

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