Pakistan Witnesses 135% Jump in Car Sales YoY in April 2024

Pakistan Witnesses 135% Jump in Car Sales YoY in April 2024

Karachi, May 13, 2024 – Pakistan has experienced a remarkable surge in car sales by an impressive 135 percent year on year (YoY) in April 2024, according to reports released on Monday.

The Pakistan Auto Manufacturers Association (PAMA) revealed that car sales soared to 10,515 units in April 2024, compared to 4,483 units during the same month last year.

Despite facing challenges in the overall fiscal year performance, the month of April saw a promising 12 percent increase in car sales compared to March 2024, which stood at 9,381 units. However, the cumulative car sales for the first ten months (July – May) of the fiscal year 2023-24 witnessed a 31 percent decline, totaling 79,595 units over the same period last fiscal year.

Analysts at Topline Securities attribute the month-on-month (MoM) jump primarily to increased sales from Pak Suzuki (PSMC), with its Alto variant recording a significant 64 percent increase to 4,786 units in April 2024, marking the highest sales in 15 months. Similarly, Indus Motors (INDU) saw a 21 percent MoM increase to 2,065 units, while Hyundai Nishat Motor reported an 18 percent MoM rise to 686 units during the same period.

However, Honda Atlas Cars (HCAR) witnessed a decline of 54 percent MoM to 1,003 units in April 2024. Despite this, HCAR recorded substantial growth of 385 percent YoY, attributing the increase to the low base effect from the previous year when the company’s plant was shut down.

Sazgar Engineering’s (SAZEW) Havel variant recorded sales of 544 units, up 8 percent MoM and 8.9 times YoY in April 2024. The decline in YoY sales is primarily attributed to escalating car prices, expensive auto financing, and the low purchasing power of consumers.

Looking ahead, analysts anticipate further improvements in car sales driven by the IMF’s new program, economic activity revival, stable currency, and potential reduction in interest rates.

In addition to car sales, Pakistan’s bike sales also witnessed a significant increase, with a 15 percent MoM and 31 percent YoY rise to 107,590 units in April 2024. Atlas Honda (ATLH) recorded sales of 95,000 units, up 19 percent MoM and 29 percent YoY, contributing to a total industry sales figure of 941,000 units, down 6 percent in the first ten months of the fiscal year 2023-24 due to higher bike prices and low consumer purchasing power.

The tractor industry also demonstrated resilience, with Millat Tractors (MTL) reporting a 70 percent YoY increase in sales to 2,045 units. However, Al Ghazi Tractors (AGTL) recorded a 34 percent MoM decrease in sales to 1,038 units in April 2024. Overall, the tractor industry saw total sales of 38,282 units in the first nine months of the fiscal year 2023-24, up 57 percent YoY due to a low base effect from the previous year’s floods.

The surge in car sales, coupled with positive indicators across various automotive segments, signals a potential rebound for Pakistan’s automotive industry, offering optimism for sustained growth in the coming months.