KARACHI, November 11 2024: Car sales in Pakistan clocked in at 13,108 units in Oct 2024, reflecting a 112% YoY and 27% MoM increase in sales, as reported by PAMA. This takes 4MFY25 sales to 40,693 units a 50% YoY rise from 27,162 units in 4MFY24.
This increase is primarily driven by improved auto financing and a general sense of optimism and stability in the market. Auto sales are expected to rise further as interest rates decline and new models, especially hybrid electric vehicles (HEVs) and electric vehicles (EVs), enter the market.
Sazgar Engineering (SAZEW) once again saw the most significant rise of 296% YoY and 21% MoM to 1,002 units in Oct 2024, which was the highest sales ever recorded for SAZEW.
Pakistan Suzuki Motors Company (PSMC) saw the highest MoM rise of 40% while also up 85% YoY to 7,040 units in Oct 2024. Alto sales saw an 80% YoY and 49% MoM mainly contributing to the PSMC rise.
Indus Motor Company (INDU) recorded sales of 2,532 units a 142% YoY and 7% MoM rise. Honda Atlas Cars (HCAR) sales reached 1,514 units, up 230% YoY and 19% MoM while Hyundai Nishat Motor saw a 34% YoY rise while a 26% MoM fell to 504 units in Oct 2024.
In the motorcycle segment, 2-wheelers and 3-wheelers sales increased by 35% YoY and 5% MoM totaling 137,693 units in Oct 2024 which is the highest sales after 28 months. The rise in the motorcycle segment is due to falling inflation and thus better purchasing power for customers.
The total tractor industry recorded sales of 1,733 units, a decrease of 67% YoY while up 61% MoM. This was mainly due to Millat Tractors (MTL) as it saw sales of 1,439 units, down 52% YoY while up 94% MoM. While Al-Ghazi Tractors (AGTL) recorded sales of 294 units, down 87% YoY and 12% MoM in Oct 2024.
Tractor sales recovered this month as the Federal Board of Revenue (FBR) rescinded SRO 563(1)/2022, allowing tractors to be sold for non-agricultural uses. Additionally, the sales tax rate was raised from 10% to 14% to better align manufacturers’ input-output claims, helping to reduce the backlog of refund claims.
Truck and bus sales were up 102% YoY and 10% MoM, reaching 351 units in Oct 2024.
