Karachi, October 11, 2023 – Pakistan has witnessed a significant downturn in the sales of locally manufactured cars during the first quarter (July – September) of fiscal year 2023-24.
According to a report by Topline Securities, the data indicates a notable decline in car sales compared to the same quarter in the previous fiscal year.
During the first quarter of the current fiscal year, car sales amounted to 20,983 units, which stands in stark contrast to the 35,002 units sold in the corresponding quarter of the previous fiscal year. The Pakistan Automotive Manufacturers Association (PAMA) reported that car sales reached 8,300 units, showing a 10 percent increase month-on-month (MoM) but a 26 percent decrease year-on-year (YoY). When including non-PAMA members, total car sales reached 10,000 units, marking a 9 percent increase MoM and a 23 percent decrease YoY.
The report indicates that the month-on-month increase in car sales can be attributed to the alleviation of issues related to Completely Knocked Down (CKD) imports. However, various factors, including rising car prices, expensive auto financing, and the limited purchasing power of consumers, have led to the year-on-year decline in car sales.
Honda Atlas Car (HCAR) saw the most substantial increase in sales, with a 99 percent MoM rise, reaching 1,342 units in September 2023. This spike was primarily due to a low sales base in the previous month when the company sold only 674 units.
Pak Suzuki (PSMC) was the only company to record a decline in sales, with a 1 percent MoM decrease to 4,234 units in September 2023. This decline was led by an 8 percent MoM decrease in Alto sales. However, other variants including Ravi, Bolan, and Cultus experienced increases of 58 percent MoM, 38 percent MoM, and 9 percent MoM, respectively. Sales of Swift and Wagon-R remained steady MoM at 506 and 359 units in September 2023.
Hyundai’s sales increased by 5 percent MoM, with Porter sales rising by 48 percent MoM to 177 units in September 2023. Indus Motors (INDU) also experienced a 3 percent MoM increase in sales, driven by a 27 percent MoM increase in sales of Fortuner and Hilux.
In the tractor industry, Al Ghazi Tractors (AGTL) and Millat Tractors (MTL) recorded increases of 50 percent MoM and 29 percent MoM, respectively, in September 2023. This growth has taken the total tractor industry sales in the first quarter of fiscal year 2023-24 to 12,090 units, a 64 percent YoY increase primarily due to a lower sales base in the previous year caused by floods.
Truck and bus sales were up 11 percent MoM but down 51 percent YoY to 185 units in September 2023, contributing to a 45 percent YoY decrease in total industry sales in the first quarter of fiscal year 2023-24.
In contrast, Pakistan’s bike sales were up 21 percent MoM and 8 percent YoY in September 2023. Atlas Honda (ATLH) recorded sales of 95,000 units, marking a 27 percent MoM increase and a 12 percent YoY increase. However, the total industry sales in the first quarter of fiscal year 2023-24 amounted to 269,000 units, showing a 10 percent YoY decrease, attributed to higher bike prices and the limited purchasing power of consumers.
