rewrite this title with different wordingCars Sales in 2021 vs. 2023 | Decline of Automotive Sector

In 2022, we experienced major political distress in the country; the instability affected our country like never before and pushed it back decades. Things got so bad that once, Pakistan was on the brink of bankruptcy.

Economic instability also greatly affected the automotive sector. For an idea of how our automobile market has changed, here’s a comparison of car sales in 2021 and 2023 (when the economy and automobile market were facing the worst of their time).

Honda City and Civic

Honda City and Civic have suffered greatly during this economic distress. Their sales have been reduced to almost 50%. Here are the cumulative sales for 2021 and 2023.

The main reason we can think of behind the drop is the price increase. In 2021, Honda City’s invoice price was 30 lacs PKR, and within just two years, Honda raised the pricing to 56 lacs PKR. The same is true for Civic; in 2021, the pricing was about 58-62 lacs PKR, and now it touches the 1 Crore figure. 

Suzuki Swift 

While all cars were facing a drop, Suzuki Swift received a positive response in the sales. Here it is:

There are multiple reasons behind the Swift’s 303% increase. First of all, Suzuki launched the new generation of Swift in Pakistan in 2021, and it was a well-received model by Paki people. Secondly, due to high car prices, most people who were thinking of buying City or Corolla eventually decided to go with a lower-budget car like Swift. 

Toyota Yaris and Corolla

Yaris and Corolla sales also got a big hit by the 2022’s political instability. Here’s the figure:

Toyota initially launched the Yaris as a budget sedan, which was its unique selling point. However, following the economic downturn, Toyota decided to increase the price by almost 80% within two years. This was when the Yaris no longer fulfilled its USP, and sales went down. The same is true for the Corolla.

Hyundai Elantra

Elantra has a good story. First, let’s see the figures:

When launched, it was considered an expensive car. It’s because, at that time, Corolla was a bit cheaper than Elantra. Later, after economic stress, Corolla’s price became equal to Elantra’s. That was the time when people realized that Elantra vs. Corolla, Elantra is a relatively good value-to-money car. For 6.5 million, Elantra will outperform Corolla in every aspect, including engine size, comfort, luxury, and features. 

Suzuki Cultus

Suzuki Cultus’s sales have been dropped within two years. Here’s the figure:

Cultus was considered the car of the budget segment people, including upper-segment, middle-class, and those who were considering upgrading from Mehran. But, within two years, the prices of Cultus increased to almost 70%. In 2021, its invoice price was 26 lacs PKR, and now it’ll cost you 38 lacs PKR for the base VXR variant. Therefore, it’s no longer a budget car anymore.

Suzuki WagonR

WagonR sales have also dropped to surprisingly 77%; here’s the figure:

WagonR was a popular model in ride-hailing services specifically. The average is good; spare parts used to be cheaper, and resale was also good. However, again, the 77% drop in two years is due to the price increase. Now, most ride-hailing partners either go for a used WagonR or buy a new Alto.

Suzuki Alto

Suzuki Alto sales in 2023 were the highest, and it was the top-selling car, but they were still 50% lower relative to 2021.

In 2021, the Suzuki Alto cost around 14-16 lacs PKR, and now the base variant costs about 23 lacs PKR. You spend 23 lacs, and you don’t get an AC, power windows, or even wheel cups. But still, it’s the most selling car in Pakistan. It’s just that it’s beyond most people’s purchasing power.