Pakistan’s auto sector has seen a promising start in 2024, with January car sales reaching 10,500 units, marking an 81% increase from December 2023’s 5,816 units. When non-PAMA (Pakistan Automotive Manufacturers Association) members are included, car sales totalled 11,700 units, up 72% month-on-month.
While there was a 5% year-on-year decline from January 2023’s 11,100 units, PAMA car sales in the first seven months of FY24 stood at 49,990 units, down 48% compared to 7MFY23’s 95,240 units. This decline is attributed to factors such as rising car prices, expensive auto financing, and low consumer purchasing power. Sunny Kumar, Deputy Head of Research at Topline Securities, noted that car sales reached their highest level in eleven months, driven by increased demand for new year registrations in January.
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On a positive note, tractor sales surged by 46% month-on-month and 12% year-on-year to 3,814 units in January 2024, reaching 27,225 units in 7MFY24, up 82% year-on-year.
Arif Habib Limited Auto Analyst Muhammad Abrar Polani attributed the spike in January 2024 sales to the new year’s buying effect, ease of import restrictions, and increased affordability due to declining car prices. He expects further sales recovery as interest rates are projected to be cut in March, boosting auto financing.
Indus Motors experienced a significant increase in car sales, up 304% month-on-month to 2,762 units in January 2024, driven by the launch of the new Corolla Cross. Honda Car month-on-month sales also rose by 49%, with 1,339 units sold in January 2023 compared to 901 cars in December 2023.
Pak Suzuki Motors recorded 4,550 unit sales in January 2024, a 22% increase from December 2023’s 3,735 units. Motorbike and three-wheeler sales also surged by 27% month-on-month to 104,619 units in January 2024, although sales declined by 5% year-on-year.
With the emergence of SUVs featuring Hybrid-Electric transmissions, Adeel Usman, CEO of Regal Automobiles Industries Limited, anticipated a sustained shift away from traditional Internal Combustion Engines in the coming years.
