The car sales in Pakistan which has witnessed 24 per cent improvement during first three quarters of current fiscal year are expected to reach highest rate in next three years.
Auto sales in 2015 are expected to hit 165,000 units, nearly reaching the amount sold in 2012. A report on ‘Booming Automotive Industry in Emerging Markets’ has provided a detailed look into state of global automotive sales and how car purchasing behaviours have changed due to drastic increase in internet and mobile penetration, rising GDP, and the emergence of a middle class.
The findings in this report are results of quantitative surveys conducted online with both car buyers and car dealers, and in-depth interviews with industry influencers throughout Pakistan.
The study found that over 58 per cent of car dealers in Pakistan reported an increase in car sales over past 12 months while a close 41.7 per cent reported a decrease.
According to the Pakistan Automotive Manufacturer’s Association, local auto sales including light commercial vehicles grew by 72 per cent as compared to same month last year. One reason for the boom is the reduction in interest rates over the course of year.
With regard to shift to online, the report said, car dealers were beginning to transition to digital space to reach potential buyers as 25 per cent of dealers reported using websites to reach potential buyers, and 16.7 per cent are actively using Facebook.
Car dealers have not started using Twitter or Instagram to reach potential consumers.
Although the shift towards online is apparent, car dealers in Pakistan still have relatively high level of offline advertising, with 41.7 per cent of car dealers are still comfortable and mainly focusing their listings on newspapers.
In his comments, Chairman of All Pakistan Motor Dealers Association (APMDA) HM Shahzad on Wednesday said if provided a level playing field for all stakeholders, the auto industry could contribute substantially in achieving GDP growth targets.
The used car import alone can generate Rs 60 to 70 billion in revenue while providing healthy competition and choice of multiple makes and models at affordable prices to the consumers.
The report further revealed that globally, auto E-Commerce has grown at such a staggering rate that now as many as 80 per cent of new car customers and almost 100 per cent of used car customers begin their car shopping experience online.
With internet and mobile penetration significantly growing in emerging markets, the rate of moving the car shopping experience online is beginning to mirror that of western markets.
In Pakistan, where economic growth is at a seven-year high, close to 30 per cent of car buyers report using the Internet to conduct research on a car before making a purchase.
Auto E-Commerce has developed at such a stunning rate, to the point that now upwards of eighty for each penny of new auto clients and very nearly hundred for every penny of utilized auto clients start their auto shopping knowledge on the web.
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