Car sales in Pakistan rose to a record high in the last fiscal year, and the trend is likely to pick up pace as new players plan to enter the market of 200 million people.
As many as 218,0000 passengers cars were sold in Pakistan in the fiscal year that ended on June 30, 2016 as the country is upgraded to the emerging markets status from the frontier market by the global MSCI index.
According to a report by the Japan-based Nikkei Asia Review website, the country’s entire car manufactures are planning to raise production to meet the rising demand from the country’s growing middle class.
The auto market in South Asia’s second biggest economy is currently dominated by Japanese carmakers Toyota, Honda and Suzuki, but many new players are preparing to enter the market that includes Renault of France and Kia Motors of South Korea.
Pak Suzuki Motor, a subsidiary of Suzuki Motors, sold the most cars last year, thanks to an order from the eastern province of Punjab for 50,000 vehicles. The provincial government plan to the vehicles as taxis as part of a program to create job opportunities.
Indus Motor, a joint venture between Toyota Motor and local conglomerate House of Habib, performed well, mainly due to a 11 percent growth in sale of its trademark Corolla brand. The company sold 65,000 units. “The market is so brisk that production can’t keep up,” the report said quoting Indus Motor Vice Chairman Toshiya Azuma as saying.
Honda Motor joint venture Honda Atlas Cars also saw record-high sales, at 35,000 Civic and City units for calendar 2016, up about 50% on the year, the report said. Honda is expecting to sell 50,000 units in 2017.