Copyright FOURIN, Inc. 2022
Pakistan’s Automobile Market Decreases by 30% in 2020
The sales volume of locally produced automobiles sold by PAMA member manufacturers in 2020 is expected to decline 30% year-on-year to 130,000 units. One of the reasons for this fall is considered to be the quarantine measure from March 24, which suspended automobile production operations and sales activities for about two months. Before the new coronavirus pandemic, Pakistan’s automobile market had already shrunk remarkably in 2019 due to rapid currency depreciation and a revision of the automobile tax system. The market is expected to continue falling further in 2020, making the sales volume about half of 2018.
As for the 2021 sales volume forecast, it is expected to increase by 40% (to 180,000 units) compared to the projected sales volume in 2020, making a recovery close to 2019 levels. Yet, it will take time for both economic conditions and busines situations to recover. Thus, it is expected that the market will not return to the 200,000 unit-level until 2022.