KARACHI: Pakistan automobile sales, as reported by the Pakistan Automotive Manufacturers Association (PAMA), reached an 18-month high in June 2024, with sales of 13,300 units, according to a report published by Topline Research on Wednesday. This represents a 120% increase year over year (YoY) and a 21% increase month over month (MoM).
Indus Motors Company Limited (INDU), which witnessed a 44% increase to 2,957 units, and Pak Suzuki Motor Company (PSMC), which experienced a 15% increase to 6,885 units, are the main drivers of the MoM gain in automobile sales. Sales of Hyundai Nishat Motor increased by 55% month over month to 1,059 units, while Sazgar Engineering (SAZEW) witnessed a 12% increase to 871 units. The only firm experiencing a decrease in sales was Honda Atlas Cars (HCAR), whose June 2024 sales were down 8% MoM to 1,095 units.
The large YoY increase in overall car sales of 120% is explained by the low base from the prior year, when there were plant closures. 103,827 cars were sold in FY24, according to PAMA, an 18% YoY fall and the lowest sales in 15 years despite this growth. Reduced consumer spending power, costly auto loans, and rising car prices are the main causes of the fall.In the future, Topline Research thinks that lower interest rates, a stable currency, and increased economic activity as a result of the International Monetary Fund’s (IMF) new program will boost car sales.
In June 2024, sales of motorcycles declined 24% MoM but increased 8% YoY to 89,895 units. 80,000 units were sold by Atlas Honda (ATLH), a 22% MoM but 7% YoY decrease. A decrease of 3% in consumer purchasing power resulted in 1.15 million units being sold overall in the industry in FY24.
In June 2024, sales of tractors increased by 27% YoY and 16% MoM for Millat Tractors (MTL) to 2,718 units, and by 66% YoY and 94% MoM for Al Ghazi Tractors (AGTL). In June 2024, the tractor industry had sales of 4,134 units, up 28% YoY and 34% MoM. The low base and floods of the previous year contributed to FY24 tractor sales, which reached 45,494 units, up 47% YoY.In June 2024, sales of trucks and buses rose as well, up 21% MoM and 101% YoY to 299 units. This resulted in a 31% YoY decline in industry sales for FY24, to 2,664 units.
