In July 2024, car sales in Pakistan totaled 8,589 units, marking a 60% year-on-year increase but a significant 36% month-on-month decline, according to data from the Pakistan Automotive Manufacturers Association (PAMA).

The year-on-year increase in July car sales is attributed to the low base effect from industry shutdowns due to parts shortages.

This drop is largely attributed to pre-buying in June 2024, spurred by the introduction of increased tax rates for vehicles in the FY25 budget, which led to June sales reaching an 18-month high.

Hyundai Nishat Motor faced the steepest month-on-month decline, with sales dropping by 50% to 529 units, while also experiencing a 7% year-on-year decrease.

Indus Motor Company (INDU) saw a 44% month-on-month decline, selling 1,664 units. Honda Atlas Cars (HCAR) reported a 15% month-on-month decrease with 931 units sold, and Sazgar Engineering (SAZEW) experienced a 5% drop, selling 825 units.

In the motorcycle segment, sales of two-wheelers and three-wheelers decreased by 5% month-on-month. However, they rose by 15% year-on-year, with 84,993 units sold in July 2024. Atlas Honda (ATLH) recorded sales of 70,325 units, reflecting a 12% month-on-month decline but a 13% year-on-year increase.

The tractor segment saw Millat Tractors (MTL) sales drop by 63% year-on-year and 78% month-on-month, with 605 units sold. Al Ghazi Tractors (AGTL) recorded a 45% year-on-year and 40% month-on-month decline, selling 855 units.

The total tractor industry sales reached 1,460 units, a 45% year-on-year and 65% month-on-month decrease. The sharp fall in tractor sales is also linked to pre-buying in June 2024 due to a newly imposed 10% GST on tractor sales.

Truck and bus sales increased by 3% month-on-month and 57% year-on-year, totaling 307 units in July 2024.