Karachi, September 11, 2024 – Pakistan automotive industry has shown promising signs of recovery with a 15% year-on-year (YoY) increase in car sales during August 2024.
According to the Pakistan Auto Manufacturers Association (PAMA), the total number of units sold during the month reached 8,699, marking a significant improvement compared to the same period last year. However, on a month-on-month (MoM) basis, the growth remained flat, with just a 1% rise in sales compared to July 2024.
Analysts at Arif Habib Limited attributed the YoY growth to the “low base effect.” Last year, the automotive sector faced severe challenges, including restrictions on the opening of letters of credit (LCs), which hampered the import of critical components. Additionally, subdued demand and economic uncertainty forced several automakers to temporarily halt production, which further contributed to the reduced sales figures in 2023.
In terms of vehicle segments, the 1,300cc and above category saw a notable 35% MoM increase in August, with sales climbing to 3,330 units. Similarly, the 1,000cc category experienced a 37% MoM surge, totaling 321 units. However, sales of vehicles in the below 1,000cc segment fell by 12% MoM, with 2,766 units sold.
Key Players in the Market
Among individual automakers, Indus Motors Company Ltd (INDU) reported a significant 28% MoM increase in sales, totaling 2,129 units in August. The growth was largely driven by a 42% MoM rise in sales of its popular models, including the Corolla, Yaris, and Corolla Cross. The Fortuner and Hilux models also contributed to the company’s performance, albeit with a modest 1% MoM increase.
Pak Suzuki (PSMC), on the other hand, saw an 18% MoM decline in sales, with 3,653 units sold in August. The company’s Ravi model recorded a staggering 99% drop in sales, while the popular Alto saw a 29% MoM decline. However, other models, such as Swift, Cultus, and Wagon R, posted impressive MoM gains of 11%, 36%, and 37%, respectively. Notably, the Bolan achieved a remarkable 158% MoM increase.
Honda Atlas Cars (HCAR) reported a 23% MoM increase, driven by a 36% rise in Civic and City sales, although BRV/HRV sales fell by 47% MoM. Meanwhile, Sazgar Engineering (SAZEW) recorded a 14% MoM rise, selling 941 units, mainly due to strong demand for its Haval model.
Other Vehicle Segments
The two-wheeler market also saw growth, with Atlas Honda (ATLH) achieving a 29% MoM increase, selling 90,483 units. The tractor segment showed exceptional growth, with AGTL and MTL reporting MoM increases of 70% and 101%, respectively.
The automotive industry’s recovery, albeit gradual, signals renewed consumer confidence and improved economic conditions.
