With the rupee-dollar parity reaching new heights, the pressure moved to imports and luxury items getting banned in Pakistan. The price surge was inevitable and was much criticized by the citizens of Pakistan. The most affected sector so far was the automobile industry as the government declined to open any new “Letter of Credit” which resulted in a drastic drop in car sales. The demand for cars dropped as the price hike was recorded as the highest the country has ever faced.
According to the recently published report by PAMA (Pakistan Automotive Manufacturing Association), car sales were badly affected by the ongoing inflation and have declined car sales by 58%. In just one month. Car sales dropped from 28,379 units in June 2022 to 11,883 units in July 2022.
All automobile manufacturers faced the brunt of this crisis with Toyota being the most affected. Toyota being the automobile giant faced a big drop in car sales in July 2022 as compared to June 2022 with sales figures of 2,375 units in July alone. The decline was sharp with a month-on-month decline of 62% from the previously 6,309 units in June 2022.
Hyundai Pakistan faced a huge drop in sales figures with a month-on-month decline of 89% and sold only 201 units in July 2022 as compared to the 1,871 units in June 2022.
Atlas Honda car sales went down from 6,903 units in June 2022 to 2,537 units in July 2022 with a month-on-month decline of 32%.
Pak Suzuki Motors Company (PSMC), shared the same fate and sold only 6,679 units in July 2022 with a 58% decline in month-on-month sales.
Since Kia Pakistan, Master Changan Motors, Regal Motors, MG Motors, and Al-Haj Proton Pakistan are not part of PAMA therefore, their sales statistics were not included in the report.
Car sales for different models also dropped and saw a huge knockdown with the rising car prices. The increased prices reduced the purchasing power of many consumers and led to a decrease in car demand.
Toyota Indus sold 1,734 units of Toyota Corolla and Toyota Yaris and only 641 units of Toyota Fortuner and Toyota Hilux.
Pakistan Suzuki Motor Company sold 444 units of Suzuki Ravi, 353 units of Suzuki Bolan, 321 units of Suzuki Swift, 282 units of Suzuki Wagon R, 661 units of Suzuki Cultus, and 4,618 units of Suzuki Alto.
Hyundai Nishat sold 104 units of Hyundai Tucson, 98 units of Hyundai Porter, and a devastating figure of 0 units of Hyundai Elantra and Hyundai Sonata.
Atlas Honda recorded 2,408 units of Honda Civic and Honda City and only 129 units of Honda BR-V.
The sales statistics for various models are enough to indicate how worse the sales were impacted in just one month.
The way car prices went up in the past few months had been a record in itself which impacted the prices of cars that were never heard of in history. With the Pakistani rupee getting more stable against the US dollar, this surge is coming down gradually. All leading car manufacturers have reduced their car prices except Kia.
The reason is that all car manufacturers raised their prices by 23 percent during the price surge but Kia Motors raised its car prices by only 14%. With the decrease in rupee-dollar parity, other automobile manufacturers have reduced their car prices by 9% and came down to 15% which is still more than Kia’s 14% price increase. Kia Motors issued a press notice to justify this publicly and made it clear that Kia Motors Pakistan has kept its promise of maintaining the best interest of its valued customers.
Here is the public notification released by Kia Motors in reference to price justification.
All Kia Motors cars are available on the pricelist issued by Kia Pakistan at Kia Motors Site. Kia service center is also offering premium car maintenance services and original Kia parts for its customers having Kia Sorento, Kia Stonic, Kia Sportage, Kia Picanto, and Kia Carnival. Kia Motors cars come with 4 years service warranty so you may drive around with ease and comfort as the service team is certified by Kia to provide the best-in-class car care services and make your driving experience as smooth as it can get.