Copyright FOURIN, Inc. 2023
Pakistan’s Automobile Sales Results in the First Half of 2023
In the first half of 2023, the sales of locally assembled vehicles in Pakistan decreased by 69.6% to 44,651 units, a sharp decline compared to the same period of the previous year. In order to maintain the country’s foreign exchange reserves, the Pakistani central bank began de facto import restrictions on CKD kits in May 2022, which constrained supply relative to actual demand, resulting in continued decline in sales. The restrictions continued into 2023, limiting the supply of cars. However, Suzuki, Toyota and other companies say that restrictions have recently been eased considerably, and that the main reason for poor sales is the impact of deteriorating actual demand due to the economic downturn. According to Toyota, the waiting period for delivery has been shortened to about one to two months recently.
For the full year of 2023, it is thought that the downward trend will continue. Import restrictions on CKD kits were completely lifted in June 2023 which is a positive factor. However, due to currency depreciation caused by a decrease in foreign exchange reserves and a persistently high rate of inflation, the economic situation is poor, with the GDP growth rate forecast for 2023 as a whole at 0.46%. Although the IMF, Saudi Arabia, and other countries have provided more than 1 billion USD in financial support since July 2023, economic recovery is expected to take time.