Despite YoY decline, sales reach highest level in eleven months
Pakistan’s auto sector has witnessed a promising start to 2024, with car sales for January hitting 10,500 units, marking an 81% increase from December 2023’s 5,816 units. Including non-PAMA (Pakistan Automotive Manufacturers Association) members, car sales totalled 11,700 units, up 72% month-on-month.
Despite a 5% year-on-year decline from January 2023’s 11,100 units, PAMA car sales in the first seven months of FY24 stood at 49,990 units, down 48% compared to 7MFY23’s 95,240 units. Factors contributing to the decline include escalating car prices, expensive auto financing, and low consumer purchasing power. Sunny Kumar, Deputy Head of Research at Topline Securities, said car sales reached their highest level in eleven months, driven by increased sales in January with demand for new year registrations.
On a positive note, tractor sales surged by 46% MoM and 12% YoY to 3,814 units in January 2024, reaching 27,225 units in 7MFY24, up 82% YoY.
Read Despite YoY decline, sales reach highest level in eleven months
Arif Habib Limited Auto Analyst Muhammad Abrar Polani attributed the spike in January 2024 sales to the new year’s buying effect, ease of import restrictions, and increased affordability due to declining car prices. He anticipates further sales recovery as interest rates are projected to be cut in March, boosting auto financing.
Indus Motors saw a significant increase in car sales, up 304% MoM to 2,762 units in January 2024, driven by the launch of the new Corolla Cross. Honda Car MoM sales also rose by 49%, with 1,339 units sold in January 2023 compared to 901 cars in December 2023.
Pak Suzuki Motors recorded 4,550 unit sales in January 2024, a 22% increase from December 2023’s 3,735 units. Motorbike and three-wheeler sales also surged by 27% MoM to 104,619 units in Jan-24, although sales declined by 5% YoY.
With the emergence of SUVs featuring Hybrid-Electric transmissions, Adeel Usman, CEO of Regal Automobiles Industries Limited, anticipated a sustained shift away from traditional Internal Combustion Engines in the coming years.
Published in The Express Tribune, February 14th, 2024.
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