In September 2024, Pakistan’s automotive sector experienced a notable surge in car sales, with a 24% year-on-year (YoY) and 18% month-on-month (MoM) increase, totaling 10,297 units, according to the Pakistan Automotive Manufacturers Association (PAMA). This growth was primarily driven by the delivery of a backlog of Suzuki vehicles.

The first quarter of the fiscal year 2025 (1QFY25) saw total car sales reach 27,585 units, marking a 31% YoY increase from 20,982 units in 1QFY24.

Company-Specific Performance:

• Sazgar Engineering (SAZEW): Achieved a remarkable 174% YoY increase, although sales fell 13% MoM to 827 units, largely due to Haval sales.
• Pakistan Suzuki Motors Company (PSMC): Recorded the highest MoM increase of 37% and an 18% YoY rise, with sales reaching 5,013 units. Notably, Ravi sales soared by 57% YoY and 58 times MoM, while Alto sales increased by 23% YoY and 56% MoM.
• Indus Motor Company (INDU): Reported sales of 2,369 units, reflecting a 48% YoY and 11% MoM increase.
• Honda Atlas Cars (HCAR): Sales reached 1,269 units, a 5% YoY decline but an 11% MoM rise.
• Hyundai Nishat Motor: Experienced a 17% YoY decrease but a 15% MoM increase, with sales totaling 677 units.

The surge in sales for models like Corolla, Yaris, and Corolla Cross, which saw a 79% YoY and 20% MoM increase, was driven by heightened demand for the new Yaris variant and promotional deliveries of the Corolla Cross.

Motorcycle and Tractor Segments:

The motorcycle segment, including two-wheelers and three-wheelers, saw a 22% YoY and 26% MoM increase, reaching 130,960 units in September 2024, the highest in 27 months. This growth is attributed to falling fuel prices and inflation, enhancing consumer purchasing power. SAZEW’s three-wheeler sales doubled YoY and rose 32% MoM to 2,168 units.

Conversely, the tractor segment faced challenges, with Millat Tractors (MTL) sales plummeting 76% YoY and 39% MoM to 743 units. Al Ghazi Tractors (AGTL) recorded a significant 86% YoY and 77% MoM decline, with sales at 333 units. The overall tractor industry sales dropped 80% YoY and 60% MoM to 1,076 units, primarily due to an increase in sales tax from 10% to 18%.

Truck and Bus Sales:

Truck and bus sales rose by 74% YoY and 6% MoM, reaching 319 units in September 2024.

The overall positive trend in the automotive sector, particularly in car and motorcycle sales, reflects improved economic conditions, although challenges remain in the tractor segment due to tax policy changes.