Pakistan’s automobile industry witnessed a 22% month-on-month (MoM) decline in car sales during November 2024, with total sales clocking in at 10,163 units, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).
Despite the MoM drop, sales surged 57% year-on-year (YoY), reflecting a recovery in the sector. For the first five months of FY25 (5MFY25), car sales reached 50,856 units, marking a 51% YoY increase compared to 33,637 units in the same period last year.
The MoM decline in November is attributed to the typical year-end effect, as buyers delay purchases to secure new-year registrations, according to a report by Topline Securities.
Sazgar Engineering Works Limited (SAZEW) reported the steepest MoM decline, with sales falling 42% to 584 units. Production, however, remained stable, down just 1% MoM at 993 units. Indus Motor Company (INDU), the maker of Toyota vehicles, recorded a 13% MoM decline in sales to 2,194 units. On a YoY basis, sales surged 129%, driven by strong demand for Toyota models.
Pakistan Suzuki Motors Company (PSMC) sold 5,374 units in November, reflecting a 53% YoY increase but a 26% MoM decline.
Honda Atlas Cars (HCAR) recorded sales of 1,112 units, up 10% YoY but down 27% MoM. Hyundai Nishat Motors was the only automaker to post a MoM increase, with sales rising 21% MoM and 11% YoY to 724 units. The growth was led by a 45% jump in Tucson sales.
Dewan Farooque Motors (DFML) entered the market for locally assembled electric vehicles, selling 63 units of its newly launched Honri EV.
In the two- and three-wheeler segment, sales totaled 120,484 units in November 2024, up 36% YoY but down 12% MoM.
The tractor industry saw mixed results, with total sales of 3,428 units in November, down 2% YoY but recovering 98% MoM. The recovery was driven by the rescindment of SRO 563(1)/2022.
Al Ghazi Tractors (AGTL) recorded a significant recovery, with sales surging 187% YoY and 584% MoM to 2,012 units.
Millat Tractors (MTL), however, saw sales decline 50% YoY and 2% MoM to 1,416 units.
For 5MFY25, tractor sales stood at 10,367 units, a sharp 50% YoY decline.
Truck and bus sales rose 126% YoY to 328 units in November 2024 but fell 7% MoM.
Looking ahead, analysts expect auto sales to rebound strongly from January 2025, supported by a recovery in auto financing amid falling interest rates. However, December 2024 is likely to see further MoM declines due to the year-end effect.
The introduction of locally assembled electric vehicles and the recovery in key segments like tractors and commercial vehicles signal a positive trajectory for the industry in the coming months.
