SUVs Sales Lacklustre Amid Uncertainty, High Prices
In contrast to the last general elections held in 2018, politicians have yet not geared up buying sports utility vehicles (SUVs) and pickups, mainly double cabins, for use in public gatherings and rallies reflecting not only a lack of enthusiasm but more importantly very high prices.
The overall sales of various locally made vehicles have already been on a downward trajectory owing to restrictions on opening letters of credit (LCs) for the last over one year by the State Bank of Pakistan to bring down the current account deficit, resulting in frequent temporary plant shutdowns for want of parts and accessories.
A steep rise in prices of locally assembled vehicles has further taken away those buyers who usually do not bother over rising food inflation, utility bills and other day-to-day expenses. Now the local assemblers also complain that high prices are keeping the rich class away from buying costly vehicles as much depends on their business and sales of goods.
Political leaders contesting the general elections and even a rich candidate usually lead election rallies on SUVs and double cabin pickups to muster the support of people.
Dealers were hoping a demand uptick during campaign for elections
A sales pattern ahead of the July 25, 2018 elections reveals an uptick in sales of 4,299 units of Toyota Hilux during January-June 2018 from 3,171 during July-December 2017.
Toyota Fortuner sales rose to 2,548 during January-June 2018 from sales of 1,638 during July-December 2017.
After the start of releasing combined data of Toyota SUVs and pickup by the Pakistan Automotive Manufacturers Association (PAMA), total sales of Fortuner and Hilux vehicles during July-November FY24 nosedived to 1,789 from 5,298 units in the same period 2022.
Expressing surprise over very limited sales of Fortuner and Revo double cabin vehicles ahead of elections, a Toyota dealer said We are just waiting for the buyers to come.
Citing the extremely high prices of these vehicles compared to 2018 prices as one of the main reasons, he said both the vehicles are ready for delivery within two days. Currently 99pc of buying of Fortuner and Revo is being done in cash instead of leasing through bank financing, he added.
I cannot identify the buyers of SUVs and pickups whether political parties are directly buying or through their frontmen. We are interested in buyers’ NIC cards and their filer and non-filer status, he said.
When asked whether buyers have been waiting to lift the recently launched locally assembled Toyota Cross Hybrid Electric Vehicle (HEV) instead of Revo and Fortuner, he said I think Cross HEV may not prove as an election-driven vehicle compared to powerful petrol and diesel driven SUVs and pickups. HEV may lure buyers in terms of saving fuel.
General Manager Sales and Marketing Division at MG, Asif Ahmed said MG vehicles are not election vehicles that are going to be used for any election campaigns. We have mainly family customers.
Sources said that primary sales at the authorised showrooms are highly depressed but the secondary sales at the used car showrooms must be holding a sizable volume of costly vehicles of over six months to one year-old invoice. Many used car dealers also procure new vehicles from the authorised showrooms of local assemblers.
It means that due to rising prices of used vehicles, the used car showroom owners will reap huge profits on those vehicles which they procured at low rates in the last six months to two years.
Automotive Traders and Importers Association (ATIA) Chairman Mohammad Kamran Khan said sales of used and even new vehicles like double cabins, jeeps and pickups remain depressed.
Sales usually kick off two months before elections but currently the demand is very slow, he said, adding that perhaps people are waiting for the year’s end due to the change of model year.
ATIA Chief Coordinator Aijaz Ahmed said high prices of both new and used vehicles coupled with uncertainty about elections have created doubts among buyers of election-related vehicles.
