Pakistan Car Sales Hit 17-Month High in May 2024

Pakistan Car Sales Hit 17-Month High in May 2024 – Pakistan automotive sector has witnessed a significant surge as car sales reached a 17-month high in May 2024, according to analysts at Topline Securities.

Data released by the Pakistan Automotive Assemblers Association (PAMA) revealed that car sales soared to 10.9 thousand units in May 2024, marking a 4% month-on-month (MoM) increase and an impressive 100% year-on-year (YoY) growth.

The surge in MoM car sales was primarily driven by robust performance from Sazgar Engineering (SAZEW), whose Haval variant recorded a 43% MoM increase with sales of 779 units. Additionally, Honda Atlas Cars (HCAR) experienced an 18% MoM growth, reaching 1,187 units in May 2024.

However, Pak Suzuki (PSMC) and Hyundai Nishat Motor witnessed flat MoM sales at 6,010 units and 683 units, respectively. Indus Motors (INDU) reported a slight decline of 1% MoM, totaling 2,047 units in May 2024.

The remarkable 100% YoY increase in car sales is attributed to a low base from the previous year, which was impacted by plant shutdowns.

Despite the positive momentum in May, total car sales for the fiscal year 2023-24 (11MFY24) stood at 90,544 units, reflecting a 25% YoY decline compared to the same period last year. The decline is primarily attributed to escalating car prices, expensive auto financing, and the low purchasing power of consumers.

Looking ahead, analysts are optimistic about the automotive sector’s prospects, anticipating further improvements driven by factors such as improved economic activity following the International Monetary Fund’s new program, currency stability, and reduced interest rates.

In addition to car sales, Pakistan’s bike industry also witnessed growth, with sales increasing by 10% MoM and 22% YoY to 118,811 units in May 2024. Atlas Honda (ATLH) led the segment with sales of 103 thousand units, up 9% MoM and 19% YoY.

Tractor sales saw a mixed performance, with Millat Tractors (MTL) recording a 56% YoY increase and Al Ghazi Tractors (AGTL) witnessing a 64% YoY decline in May 2024.

Sales of trucks and buses surged by 8% MoM and 61% YoY to 247 units in May 2024, contributing to a total industry sales figure of 2,365 units for the fiscal year 2023-24, down 36% YoY.