Karachi, November 11, 2024 – The Pakistan car market has witnessed an exceptional surge in sales, with a record-breaking 112% Year-on-Year (YoY) growth in October 2024, as revealed by the Pakistan Auto Manufacturers Association (PAMA) on Monday. The October sales totalled 13,108 units, marking a 27% increase compared to September 2024, signaling a robust recovery in the auto sector.
This surge brings the total car sales in the first four months of fiscal year 2024-25 (July–October) to 40,693 units, a remarkable 50% increase from the 27,162 units sold in the same period last year. The sharp rise is attributed to improved consumer confidence, better financing options, and increasing optimism in Pakistan’s economic landscape.
Analysts at Topline Securities Limited have noted that the car sales growth is driven by several key factors, including a stabilization of interest rates, the introduction of new models, and the growing popularity of hybrid electric vehicles (HEVs) and electric vehicles (EVs) in the market. With interest rates on the decline, the auto market is expected to maintain its upward trajectory in the coming months.
Key Players Report Significant Growth
Among the top-performing automakers, Sazgar Engineering (SAZEW) led the pack with an impressive 296% YoY growth and a 21% MoM increase, reaching 1,002 units in October 2024 – its highest sales ever recorded.
Pakistan Suzuki Motors Company (PSMC) also experienced substantial growth, with sales climbing 85% YoY and 40% MoM, totaling 7,040 units. Notably, the Alto model played a major role in this growth, seeing an 80% YoY and 49% MoM increase in sales.
Indus Motor Company (INDU) recorded 2,532 units sold, reflecting a 142% YoY and a 7% MoM increase. Honda Atlas Cars (HCAR) saw a remarkable 230% YoY growth and a 19% MoM rise, reaching 1,514 units.
Meanwhile, Hyundai Nishat Motor recorded a 34% YoY rise but saw a 26% decline MoM, with sales reaching 504 units in October 2024.
Motorcycle and Tractor Segments Show Mixed Performance
In the motorcycle segment, sales soared by 35% YoY and 5% MoM, reaching 137,693 units – the highest sales in 28 months. The increase is attributed to improved purchasing power, driven by falling inflation.
On the other hand, the tractor industry faced a mixed performance. While tractor sales rose 61% MoM to 1,733 units, the YoY comparison showed a sharp decline of 67%. This was mainly due to Millat Tractors (MTL), which recorded a 52% YoY drop but saw a 94% MoM increase. Al Ghazi Tractors (AGTL) experienced a significant decline, with sales down 87% YoY and 12% MoM.
However, tractor sales got a boost with the Federal Board of Revenue (FBR) lifting the restriction on non-agricultural sales under SRO 563(1)/2022 and raising the sales tax rate from 10% to 14%, helping alleviate a backlog in refund claims.
Trucks and Buses Show Robust Growth
The truck and bus segment also saw notable growth, with sales increasing 102% YoY and 10% MoM, totaling 351 units in October 2024.
Overall, Pakistan’s automotive sector is experiencing a strong rebound, supported by improved financing conditions, stable macroeconomic factors, and the introduction of new vehicle models catering to evolving consumer preferences.
