Pakistan Automotive Manufacturers Association (PAMA) has released production and sales numbers of the local automotive industry. As per the report, during the outgoing fiscal year 2021 (FY21) the local car industry recorded rip-roaring growth of 62% Year on Year basis (YoY) to 181,397 units compared to 111,965 units in the fiscal year 2020 (FY20).
Hyundai reported the highest growth in sales by 1,634% Year on Year basis (YoY) to 5,790 units in FY21 compared to merely 334 units sold in FY20. Indus Motor company producer of Toyota brand cars in Pakistan reported a stunning 12%YoY basis growth in their sales to 57,236 units in FY21 compared to sales of 28,378 units reported in FY20. Honda Atlas Cars, producers of Honda Brand cars and Pak Suzuki Motor Company, producers of Suzuki brands cars also reported a skyrocketing growth in sales by 79%YoY and 34% YoY respectively. As far the market share, during the FY21, Pak Suzuki Motor Company’s market share dropped by a massive 10% to 49% in FY21 from 59% in FY21, whereas, Market Share of Indus Motor Company and Honda Atlas Cars increased to 32% and 16% respectively.
The Motorcycle and Three-wheelers manufacturers have enjoyed the jolly ride which came along with the economic revival in prevailing low-interest rates scenario as the industry reported a 39%YoY increase in the sales to 1.90 million units in FY21 compared to 1.37 million units reported in FY20. The highest growth in sales of 48%YoY to 1,292,096 units was reported by Atlas Honda Limited (manufacturers and sellers of Honda Brand Motorcycles) as against the sales of 873,902 units reported in FY20 followed by Pak Suzuki Motorcycle company with 44% YoY growth in sales to 24,851 units in FY21 compared to sales of 17,301 unit reported by the company in FY20. As far as the market share, Atlas Honda solely dominates the motorcycle sales in Pakistan with a massive 68% share in overall sales. There is no other player anywhere near around this giant.
The reason behind this exceptional performance of the cars and motorcycle industry is the prevailing low interest rates, economic recovery, and strong growth potential, and rising per capita income.