Pak Suzuki, Honda, and Toyota, collectively known as Japan’s “Big Three” auto companies in Pakistan, are projected to report a combined sales volume of 87,612 units for the fiscal year 2023-24.
This marks a significant 23% decline compared to the previous year and represents a 21-year low, according to a JS Research report released on Tuesday.
The decline in sales is attributed to reduced consumer purchasing power, increased imports of used cars, and higher vehicle prices due to currency depreciation and increased taxes on auto manufacturers.
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In the previous fiscal year 2022-23, the Big Three sold a total of 113,346 units.
This downturn underscores the challenges confronting the automotive sector, including inflation, currency fluctuations, and evolving consumer preferences.
Despite this, there is expected to be a nearly twofold increase in sales volume in June 2024, reaching 10,140 units compared to the same period last year.
The report has attributed the increase in June sales to a lower base effect from plant shutdowns at Indus Motor Company Limited (INDU) and Pak Suzuki Motor Company (PSMC) in the previous year.
Month-on-month, a modest 10% increase in Big Three sales for June is expected, with INDU leading with a projected 44% recovery.
