Pakistan’s Car Sales Witness Staggering 48% Decline in 7MFY24

Pakistan’s Car Sales Witness Staggering 48% Decline in 7MFY24

Karachi, February 13, 2024 – Pakistan’s automotive industry has experienced a significant setback with a staggering 48 percent decline in car sales during the first seven months (July – January) of the fiscal year 2023-24.

Local manufacturers reported sales of only 49,900 units during this period, compared to 95,240 units in the same months of the previous fiscal year.

The decline is particularly pronounced in the passenger car segment, where sales dropped by 49 percent to 38,464 units during July – January 2023-24, compared to 74,933 units in the corresponding period of the last fiscal year. Among the various engine capacities, 1000CC cars suffered the most significant drop, plummeting by 57 percent. Passenger cars with engine capacities of 1300CC and above and below 1000CC also experienced declines of 57 percent and 42 percent, respectively.

Sales of vans and jeeps also saw a substantial decrease, falling by 43 percent to 11,526 units in the first seven months of the current fiscal year, down from 20,307 units in the same period of the last fiscal year.

However, there was a glimmer of hope for the automotive industry in January 2024, as sales rebounded with a month-on-month increase of 81 percent, reaching 10.5K units. This positive trend was accompanied by a 5 percent year-on-year decline.

Analysts at Arif Habib Limited attribute the January surge to several factors, including the new year buying effect, improvements in the import of Completely Knocked Down (CKD) units due to eased import restrictions, and increased affordability for consumers due to slight price reductions in the second quarter of fiscal year 2023-24.

Breaking down the segments further, there was a notable 129 percent month-on-month increase in the 1,300cc and above category, while the 1,000cc segment experienced a 16 percent month-on-month decrease. The below 1000cc segment demonstrated a 29 percent month-on-month surge, reaching a total of 3,118 units.

Indus Motors (INDU) saw a remarkable 304 percent month-on-month increase in sales in January 2024, totaling 2,762 units. This surge can be primarily attributed to a substantial 376 percent month-on-month increase in Fortuner and Hilux sales.

Pak Suzuki (PSMC) demonstrated a 22 percent month-on-month upturn in overall sales during the same period, indicating a potential recovery for the company.

Honda Atlas Cars (HCAR) experienced a 49 percent month-on-month increase in volumetric sales in January 2024, thanks to a notable 53 percent month-on-month surge in Civic/City sales, reaching a total of 1,207 units.

In the two-wheeler segment, sales volumes saw a 25 percent month-on-month rise but a 5 percent year-on-year decline in January 2024. Atlas Honda (ATLH) achieved sales of 92,041 units, marking a 28 percent month-on-month increase and a 2 percent year-on-year growth.

Tractor sales witnessed a robust growth of 46 percent month-on-month in January 2024. AGTL reported a sharp increase of 99 percent month-on-month, recording 1,005 unit sales, while MTL sales arrived at 2,809 units, up by 34 percent month-on-month. This indicates a positive trend in the agricultural machinery sector, potentially contributing to the overall economic recovery.