KARACHI: Passenger car sales (PAMA members) in the country increased by 9.0 per cent in August 2024 compared to August 2023, according to data released on Tuesday.
Sales in August also showed a month-on-month increase of 1.0 per cent, compared to July 2024. According to the Pakistan Automotive Manufacturers Association (PAMA), passenger car sales (PAMA member cars) rose by 9.0 per cent to 6,417 units in August 2024 compared to 5,909 units sold during the same month last year.
For the cumulative two months of FY25, passenger car sales increased by 28 per cent, reaching 12,274 units compared to 9,611 units during the same period last year.Auto expert and former chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Mashood Ali Khan said that FY2023-24 was a challenging year for the car industry due to low sales volumes. “This year is better, but we have to wait for the June 2025 data to see if we can reach 100,000 or 150,000 units,” he said.
Khan also pointed out that while the decline in interest rates is positive, even a reduction to 17 per cent may not be favourable for the auto industry until it drops to single-digit levels. He added that the country must address its economic challenges and the import of CKD kits.
Khan noted that the middle class, burdened by rising taxes and inflation, is unlikely to significantly contribute to car purchases in the near future. “I don’t foresee them buying cars through bank financing due to high interest rates,” he said, adding that the situation will become clearer after the first quarter.
He also highlighted a shift in consumer preference from cars to motorcycles. It remains to be seen how the government will play a role in supporting the automotive industry. According to PAMA data, August 2024 sales were 10 per cent higher than July 2024, when 5,857 units were sold.
Sales of cars with engines 1,300cc and above were recorded at 3,330 units, a 44 per cent increase compared to 2,310 units last year. Sales of 1,000cc cars dropped to 321 units compared to 664 units in the same month last year, while sales of cars below 1,000cc fell 6.0 per cent to 2,766 units, down from 2,935 units last year.
Sales of jeeps and pick-ups increased to 2,282 units from 1,670 units during the same period last year. Tractor sales dropped to 2,670 units, compared to 3,967 units in August 2023. The sale of rickshaws and motorbikes rose to 104,234 units in August 2024, up from 88,318 units during the same period last year.
Myesha Sohail, an analyst at Topline Securities, attributed the increase in auto sales to the introduction of newer models and the low sales base from the previous year.Sazgar Engineering Works (SAZEW) saw the most increase, with sales rising 606 per cent year-on-year (YoY) and 9.0 per cent month-on-month (MoM) to 953 units in August 2024.
This marks the company’s second-highest monthly sales, just behind the 967 units sold in January 2024.Honda Atlas Cars (HCAR) reported sales of 1,148 units, marking a 70 per cent YoY increase and a 23 per cent MoM rise. Indus Motor Company recorded sales of 2,129 units, a 38 per cent YoY increase and a 28 per cent MoM rise.
Corolla, Yaris, and Corolla Cross sales increased by 40 per cent YoY and 42 per cent MoM, while City and Civic sales jumped 118 per cent YoY and 35 per cent MoM in August 2024. Hyundai Nishat Motors saw a 24 per cent YoY decline, but a 12 per cent MoM rise to 591 units in August 2024. Pakistan Suzuki Motors Company (PSMC) experienced a 14 percent YoY decline, and an 18 per cent MoM drop, with sales falling to 3,653 units in August 2024.
Analysts noted that the plant shutdown by Pak Suzuki Motors, due to issues with CKD imports, contributed to the decline in sales. In the motorcycle segment, sales of two-wheelers and three-wheelers in Pakistan increased by 18 per cent YoY and 23 per cent MoM, totalling 104,234 units in August 2024. Atlas Honda (ATLH) reported sales of 90,500 units, reflecting a 21 per cent YoY and 29 per cent MoM increase.
In the tractor segment, Millat Tractors (MTL) saw sales of 1,218 units, down 50 per cent YoY but up 101 per cent MoM. Al Ghazi Tractors (AGTL) recorded sales of 1,452 units, down 7.0 per cent YoY but up 70 per cent MoM in August 2024.
This brings the total tractor industry sales to 2,670 units, a decrease of 33 per cent YoY but up 83 per cent MoM. Truck and bus sales were up 83 per cent YoY but down 2.0 per cent MoM, reaching 300 units in August 2024.