The News reported that the bonanza of Pakistani local car manufacturers has come to a halt with local car sales plunging by 51% in the Q1 of financial year 2008-09.

According to recent numbers released by Pakistan Automotive Manufacturers Association, car sales for the month of September were down by 29% at 7,889 units against 11,072 units sold during the same month last year.

However on month on month basis, the car sales increased by 23% primarily due to notable growth in Corolla sales at 1,280 units, which is 275 % higher than 341 units sold during August 2008. This impressive sales growth is attributable to the commercial production of new model of Corolla.

On cumulative basis, during 1Q FY 2009 total car sales remained 51% lower at 19,066 units as compared to 39,297 units sold during the same period last year.

During the 1Q FY 2008, almost all manufacturers registered a decline in sales units. Among major players, massive drop was witnessed in Indus Motor’s sales units with 64% decline at 4,659 units that followed by Pak Suzuki Motors which registered 48% decline in sales volume over the same period of FY 2008. Indus Motor suspended its production of Corolla in July to August in order to launch its new model, which resulted in 80% decline in the sale of the model.
More interestingly, this is not the domestic phenomenon only as more or less for the same reasons auto assemblers all over the world are going through a tough time. This phenomenon is mainly attributable to change in auto finance policies by the suppliers of funds. As pre-emptive measures amid mortgage crisis, auto financiers have become more fastidious or reluctant of disbursing auto loans.