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Traditionally, in the mid of every month, we have kept you updated on the sales performance of local car makers, providing you a snapshot of how well cars are moving off the lots. But this only tells a part of the story. From now, you will also have a detailed look at the production statistics translating industry’s health, manufacturing efficiency including supply chain stability and future sales potential.

As per PAMA (Pakistan Automotive Manufacturers Association) report, local production of passenger car is decreased by 32% in FY24, producing 62,475 units compared to 91,560 vehicles in the corresponding period of last fiscal year.

Two & Three Wheelers

The two-wheeler industry in FY24 faced challenges similar to those in the car industry, experiencing a 7% decline in production. Output fell to 921,952 units from 987,580 the previous fiscal year. In contrast, three-wheeler production saw a significant increase, rising by 25% to 19,735 units in FY24, up from 15,820 units last year.

Trucks & Buses

In the commercial sector, trucks and buses experienced substantial declines, with production dropping by 39% and 50%, respectively, to 1,694 and 323 units.

Jeep/Pickup & Tractors

Furthermore, tractor production has been surged by 55%, reaching 39,546 units in FY24, compared to 25,571 units the previous year. Meanwhile, Pickup/Jeep Tractor production declined by 42%, with 16,295 units produced, down from 27,916 units the previous year.

The reason behind the downtrend observed in car production in previous several months was the import restrictions and closure of letter of credits by the State Bank of Pakistan (SBP) to control the nosedive in Rupee value against the US dollar and curb the depleting foreign reserves.

Car sales

As per the Pakistan Automotive Manufacturers Association (PAMA) report, month-on-month (MoM) car sales has increased by 12% last month, selling 10,515 in April 2024 compared to 9,381 vehicles in March 2024.

However, in a year-on-year (YoY) analysis, there’s been a staggering increase of 135%, thanks to the stability in Pakistani Rupee against mighty US dollar. Car manufacturers managed to sell 10,515 cars compared to 4,483 vehicles during the same period last year.

What do you think about the drop observed in car production in FY24? Drop your thoughts in the comments section.