Car sales surge 28% in August on new variants

Passenger car sales hit 12,274 units; Sazgar Engineering leads with 606% growth

KARACHI:

Passenger car sales in Pakistan rose by 28% in August 2024, reaching 12,274 units compared to the previous month, driven by economic recovery, the introduction of new variants, and a lower base effect, according to data from the Pakistan Automotive Manufacturers Association (PAMA).

The increase in sales marks a significant recovery in the auto sector, with analyst Myesha Sohail from Topline Research attributing the growth to improved economic conditions, lower base effect and fresh models in the market.

In an interview with a private TV channel, Auto Sector Analyst Mashood Khan remarked that if the interest rate comes down to a single digit, the auto sector may even outperform.

The PAMA reported that truck and bus sales increased by 72%, reaching 500 units, while bus sales rose by 67% to 107 units. Sales of jeeps and pick-ups surged by 64% to 5,014 units.

Meanwhile, sales of two- and three-wheelers, including motorbikes and rickshaws, climbed to 189,227 units, reflecting a 17% increase. However, farm tractor sales declined to 4,130 units, showing a 38% decrease during the same period.

According to Topline Research Sazgar Engineering saw the highest growth, with a 606% YoY rise to 953 units. Honda Atlas Cars sales also climbed, recording 1,148 units, a 70% YoY and 23% MoM increase.

Indus Motor Company achieved a 38% YoY and 28% MoM rise with 2,129 units sold, boosted by strong sales of Corolla and Yaris models.

However, not all automakers saw gains. Pakistan Suzuki Motors Company experienced a 14% YoY decline in sales, with 3,653 units sold. Hyundai Nishat Motor saw mixed results, with a 12% MoM rise but a 24% YoY decline.

In the motorcycle segment, Atlas Honda recorded a 21% YoY and 29% MoM rise, selling 90,500 units.