In October 2024, Pakistan’s auto industry experienced a substantial 27% month-over-month (MoM) increase in car sales, reaching a total of 13,108 units. This impressive growth also represents a 112% year-over-year (YoY) rise, according to data from the Pakistan Automotive Manufacturers Association (PAMA).

For the first four months of FY25, total sales have reached 40,693 units, marking a 50% increase from the 27,162 units sold during the same period last year. This growth is largely attributed to improved financing options and a positive consumer outlook as interest rates stabilize. Additionally, there is rising demand for new models, particularly hybrid and electric vehicles (HEVs and EVs), which are expected to enter the market soon.

Car Sales:

• Sazgar Engineering (SAZEW) led the market with a remarkable 296% YoY growth and a 21% MoM increase, achieving 1,002 units in October 2024, marking its highest monthly sales on record.
• Pak Suzuki Motors Company (PSMC) recorded strong growth, with an 85% YoY increase and a 40% MoM rise, reaching a total of 7,040 units. The Suzuki Alto was a significant contributor, showing an 80% YoY rise and a 49% MoM increase.
• Indus Motor Company (INDU) reported 2,532 units sold, reflecting a 142% YoY growth and a 7% MoM increase, indicating steady demand for its models.
• Honda Atlas Cars (HCAR) experienced a significant boost with a 230% YoY increase, selling 1,514 units in October.
• Hyundai achieved a 34% YoY rise in sales with 504 units, although it saw a 26% decrease from the previous month.

Motorbikes and Three-Wheelers:

The motorcycle and three-wheeler segment also saw substantial growth, with sales increasing by 35% YoY and 5% MoM to reach 137,693 units, marking the highest monthly volume in 28 months. This growth is driven by stable fuel prices and improved consumer purchasing power.

• Atlas Honda Limited (ATLH) led the segment with 115,293 units sold, reflecting a 28% YoY growth and a 5% MoM increase.
• Pak Suzuki Motors Company (PSMC) saw a strong 79% YoY rise and a 10% MoM growth in its motorbike and three-wheeler segment, reaching 2,182 units.
• Sazgar Engineering (SAZEW) recorded a significant 139% YoY growth and a 9% MoM rise, totaling 1,207 units in October.
• Other companies in this segment collectively reported an 85% YoY increase and a 5% MoM rise, reaching a total of 17,817 units sold.

Tractors:

In contrast, the tractor segment faced challenges, with October 2024 sales totaling 1,733 units—a 67% YoY decline. This decrease is partly due to a recent Federal Board of Revenue (FBR) policy change, which allowed tractors to be used for non-agricultural purposes, disrupting demand.

• Millat Tractors faced challenges, with sales declining by 52% YoY and a 3% MoM decrease, totaling 1,439 units for October 2024.
• Al-Ghazi Tractors (AGTL) also saw a sharp drop, with a 67% YoY decrease and a 5% MoM decline, resulting in 294 units sold.

Trucks and Buses:

Truck and bus sales showed encouraging growth, rising by 102% YoY and 10% MoM to reach a total of 351 units in October 2024. This increase is likely due to demand from the expanding transportation and infrastructure sectors.

• Hino saw substantial growth in the truck and bus segment, with a 102% YoY increase and a 38% MoM rise, reaching 107 units in October 2024.
• Master Motors recorded positive growth with a 234% YoY and a 30% MoM increase, achieving 48 units sold.
• JAC experienced steady 102% YoY growth and a 15% MoM rise, reaching 51 units in sales.
• Isuzu saw a 78% YoY growth and a 10% MoM rise, with 145 units sold in October.