Car sales reach 18-month high, surge 120% YoY
“The auto market is likely to remain subdued, with an expected decline in sales of 8 to 10% during FY2024,” says Mohsin Siddiqui, General Manager Plant at Agriauto. photo: afp
According to a report released by Topline Research on Wednesday, Pakistan car sales, as reported by the Pakistan Automotive Manufacturers Association (PAMA), hit an 18-month high in June 2024, recording sales of 13,300 units. This marks a 21% increase month-on-month (MoM) and a 120% increase year-on-year (YoY).
The MoM increase in car sales is driven primarily by Indus Motors Company Limited (INDU), which saw a 44% rise to 2,957 units, and Pak Suzuki Motor Company (PSMC), which recorded a 15% increase to 6,885 units. Hyundai Nishat Motor saw sales of 1,059 units, a 55% MoM rise, while Sazgar Engineering (SAZEW) recorded a 12% increase to 871 units. Honda Atlas Cars (HCAR) was the only company to see a decline, with sales down 8% MoM to 1,095 units in June 2024.
The significant 120% YoY jump in total car sales is attributed to a low base from the previous year, which experienced plant shutdowns. Despite this growth, FY24 PAMA reported car sales at 103,827 units, marking an 18% YoY decline and the lowest sales in 15 years. The decline is primarily due to escalating car prices, expensive auto financing, and reduced consumer purchasing power.
Looking ahead, Topline Research believes that improved economic activity following the International Monetary Fund (IMF)’s new programme, a stable currency, and reduced interest rates will enhance car sales.
In the motorcycle sector, sales fell 24% MoM but rose 8% YoY to 89,895 units in June 2024. Atlas Honda (ATLH) recorded sales of 80,000 units, down 22% MoM but up 7% YoY. Total industry sales reached 1.15 million units in FY24, down 3% due to low consumer purchasing power.
Among tractors, Millat Tractors (MTL) recorded sales of 2,718 units, up 27% YoY and 16% MoM, while Al Ghazi Tractors (AGTL) sold 1,416 units, up 66% YoY and 94% MoM in June 2024. Total tractor industry sales reached 4,134 units in June 2024, up 28% YoY and 34% MoM. FY24 tractor sales hit 45,494 units, up 47% YoY, attributed to last year’s low base amid floods.
Truck and bus sales also increased, up 21% MoM and 101% YoY to 299 units in June 2024, bringing FY24 industry sales to 2,664 units, a 31% YoY decrease.