SUVs Sold More Than Smaller Cars Despite Inflation: Economic Survey

Rampant inflation and relentless economic instability have ravaged the car industry. However, despite these issues, the SUV and pickup truck (double cabin) segments fared better than expected compared to the car segment. According to the Pakistan Economic Survey 2022-23 report, the car segment saw a 47.3% Year Over Year (YOY) decline in production in the FY 2022-23. The SUV segment, on the other hand, saw a decline of only 25% YOY in production, despite the exorbitant price tags. The two and three-wheeler industry also saw a decline of 33.3% in production. In the context of SUVs, an argument can be made that their production and sales volume is considerably less than cars, even in normal circumstances.  Even if both declines are compared to change, car sales, and production fared much worse than SUV sales and production. The ongoing economic instability has been devastating for Pakistan’s auto industry. However, with the new budget around the corner, the atmosphere is filled with anticipation as to where the car industry of Pakistan will go from here.