Local automakers experienced a marginal uptick in their sales during February 2024. However, contrastingly, there has been an amazing 600% surge in the imports of used cars in the same month.
Aamir Allawala, CEO of Tecno Auto Glass Limited, noted, "The growth in local auto industry sales, which had been decreasing since July 2022, saw a brief revival after 19 months, but this progress is being offset by the substantial rise in used car imports."
In February 2024 alone, 3,213 units were imported, marking a significant increase from the 396 units imported during the same period in the FY 2023.
Allawala attributed the sales boost in January-February 2024 to improved agricultural income from a better cotton crop and pre-election purchases. However, he cautioned that this momentum may not be sustained amidst the influx of imported used cars.
He further highlighted that despite a brief respite in the third quarter of FY 2023-24, the continuous rise in used car imports over the past nine months has dashed hopes for the local auto industry. He emphasized that a revival in economic activity is crucial for stimulating demand growth, but this can only be achieved if the government takes steps to curb used car imports.
Due to the escalating imports, the share of used cars has surged to 30% in FY 23-24, up from 4% in the entire FY 22-23.
Data reveals that car sales in the first nine months (July-March) of FY 23-24 totaled 59,699 units, witnessing a 41% decline compared to the 101,426 units sold during the same period last year.
