Car sales in Pakistan declined by 20% in August due to Mehran

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Car sales in Pakistan witnessed a sharp decline in August down by 20% as compared to the previous corresponding period last year, the steep fall was recorded due to sharp fall in the sales of low-priced vehicles including Suzuki Mehran and Ravi.

Earlier in March, according to Pak Suzuki officials Suzuki Mehran was being considered to be pulled out from the product line. In July, Pak Suzuki announced that it will discontinue the model Mehran in the coming months and most recently Pak Suzuki has circulated official document which confirms that Suzuki Mehran will be discontinued from April 2019.

Pak Suzuki Motors, which is a big player in the market for catering the demand for low-priced cars in Pakistan below 1000cc engine has witnessed a significant fall in sales, the company was also down in volume by 27% to 8,683 units as compared to the last year’s August.

Since the decline of Ravi and Mehran contributed towards the overall decline in auto sales, there is another prominent reason for this fall. The increasing demand for substitutes such as Suzuki Wagon-R D, Daihatsu Mira, and others was one major factor and the decision to discontinue Mehran was the other.

Mehran and Ravi both showed a significant decline in sales, with 42% and 50% respectively whereas Wagon-R sales grew by 11%. Pak Suzuki overall sales declined by 12% in the two months which is the highest fall among its competitors.

There are several other factors that contributed to a sharp fall in sales, Mehran introduced three price hikes in one calendar year, law changes which require car owners to file tax returns, and the arrival of new cars such as United Bravo on the market also played a significant role in car sales.

However, Toyota has reported growth during the first two years of the current fiscal year, Honda also saw a decline in sales with 15% lower volume to 3,961 units. Sales of Honda City and Honda Civic fell by 12% while BR-V sales plunged by 32%. The overall Honda sales were down by 3% during the first two months of the current fiscal year.

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