Sazgar Engineering Works Limited (SAZEW), the official manufacturer and distributor of Haval vehicles in Pakistan, reported a notable 42% month-over-month decline in four-wheeler sales for November 2024.
Analysts at Topline Securities Limited attribute the drop primarily to the year-end effect, a common trend in the Pakistani automotive market during the final months of the year.
As the year comes to an end, potential car buyers often delay their purchases, with many preferring to register their new vehicles in the upcoming year.
This delay is based on the common belief that newer vehicle registrations can positively impact the resale value of the car. Consequently, car sales tend to slow down in November and December, with dealers offering various promotions and incentives to boost sales during this period.
Although sales saw a significant drop, Haval’s production numbers remained stable, indicating that demand for the brand continues to be strong.
Dealers are offering 2025 vehicle registrations, reflecting their confidence in a recovery in demand in the coming months. This trend is not unusual, as the Pakistani auto industry traditionally experiences sales dips during the year-end but also sees a sharp recovery in the new year.
Historical data supports this expectation, as SAZEW faced a similar situation in December 2023. The company recorded an 89% month-over-month sales drop during that period, only to experience a substantial rebound in January 2024.
The analysts also forecast that if this pattern continues, Haval is likely to experience a significant sales surge in January 2025, with sales potentially reaching 1,700 to 2,000 units.
At present, Haval vehicles are being delivered with a standard lead time of up to three months. However, customers seeking faster delivery can opt to pay a nominal premium to receive their vehicles immediately. This option provides flexibility for those who are willing to pay a bit extra for quicker access to their new cars.
In conclusion, while Haval’s sales in November 2024 saw a seasonal decline, the company remains optimistic about a strong recovery in January 2025.
This trend aligns with the traditional ebb and flow of the Pakistani automotive market, offering a positive outlook for the brand’s future sales performance.