Karachi, August 12, 2024 – Pakistan’s automobile industry has faced a severe downturn, with car sales plummeting by 35% month-on-month (MoM) in July 2024. The figures dropped sharply from 13,284 units in June 2024 to just 8,589 units in July.
Despite this dramatic decline, the year-on-year (YoY) comparison tells a different story. Car sales surged by an astonishing 69% compared to July 2023, when only 5,092 units were sold.
Analysts at Arif Habib Limited attribute the month-on-month decrease to a high base effect from June. The previous month had seen a surge in sales as consumers rushed to buy vehicles before new vehicle taxes, including increased withholding tax, were introduced in the federal budget for 2024-25.
Examining the sales figures by segment reveals even more striking declines. The 1,300cc and above category experienced a 45% MoM drop, with sales falling to 2,465 units. The 1,000cc segment suffered a staggering 74% MoM decrease, with sales plummeting to just 235 units. Sales in the below 1,000cc segment also dropped significantly, down 33% MoM to 3,157 units.
Major automotive manufacturers reported varying impacts. Indus Motors Company Ltd (INDU) saw a notable 44% MoM decrease, with sales dropping to 1,664 units. This decline was largely due to a 52% MoM drop in sales of popular models such as the Corolla, Yaris, and Corolla Cross, alongside a 16% MoM decrease in Fortuner and Hilux models.
Pak Suzuki (PSMC) reported a 35% MoM drop, maintaining sales at 4,470 units. The company’s Cultus model saw an alarming 82% MoM decrease, with sales of the Swift, Ravi, Wagon R, Alto, and Bolan also falling significantly.
Honda Atlas Cars (HCAR) fared somewhat better, with a 15% MoM decrease overall. The decline was driven by a 20% MoM drop in Civic/City sales, though this was partially offset by a 25% MoM increase in sales of the Honda BRV/HRV.
In the three-wheeler segment, Sazgar Engineering (SAZEW) reported an 11% MoM decline in sales, totaling 1,624 units. Two-wheeler sales also fell by 5% MoM, with Atlas Honda (ATLH) reporting a 12% decrease.
The tractor segment faced the most severe downturn, with sales plummeting 65% MoM. AGTL recorded a 40% decrease, amounting to 855 units, while MTL saw an 78% MoM decline, selling just 605 units.
Overall, July 2024 marks a challenging period for Pakistan’s automotive sector, reflecting broader economic pressures and shifting market dynamics.
