Driving with the brakes on

New wheels hitting the road in the country is a good measure of business and commercial activity, especially considering that the railway network has all but stalled.
But sales of new trucks, buses, pick-ups and small passenger cars, have all plunged in recent months, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).
According to the association, domestic assemblers registered fewer sales across all categories of vehicles including motorcycles and three-wheeler in the 10 months ending April-13, compared to the same period last year.
Local companies have been crying foul over the unabated import and smuggling of used cars from other countries during the previous government. They allege that imports of more than 60,000 passenger cars and smuggling of scores more has significantly dented their business.
However, this explanation only suffices for the fall in sales of passenger cars.
The alarming drop in sales of trucks, buses and pick-ups highlights a harsher reality; that the wheels of the economy are churning slow. Why else is demand for vehicles used for transporting goods and mass transport, dwindling?
Mind you, no significant jump in imports of such vehicles has been reported by PAMA or other industry representatives. Further, talking to BR Research, Director General PAMA Abdul Waheed Khan also attributed these sluggish sales to the slow pace of economic activity.
While fewer vehicles that drive commerce are hitting the roads; the elite are whizzing about in more style than ever before. Sales of Honda Civic, Honda City and Toyota Fortuner rose in sharp contrast to the wider trend, over this period.
Although sales of Toyota Corolla are down in comparison to the previous period; they have surged significantly since the new model of this brand was introduced some months back. Clearly, there is a cash-rich clientele whose appetite has not been satiated, even with the influx of imported alternatives.
On the bright side, tractor sales have marked an up tick over the period; owed in large part to government-sponsored schemes. However, the production of tractors had stalled in the latter months of 2011, thus providing a lower base for comparison.