Car Sales Surge 27% MoM in October 2024
Staff Report:
Car sales in Pakistan saw a significant surge in October 2024, reaching 13,108 units, which represents a 27% month-on-month (MoM) growth and a remarkable 112% year-on-year (YoY) increase, according to data from the Pakistan Automotive Manufacturers Association (PAMA). This brings the total sales for the first four months of fiscal year 2025 to 40,693 units, marking a 50% YoY rise compared to the 27,162 units sold during the same period last year.
The strong performance in the car market is primarily driven by improved access to auto financing, coupled with a general sense of market stability and optimism. This trend is expected to persist, as interest rates are trending downward, and new vehicle models—especially hybrid electric vehicles (HEVs) and electric vehicles (EVs)—are being introduced to meet growing consumer demand.
Among the individual automakers, Sazgar Engineering (SAZEW) experienced the largest increase in sales, reporting a staggering 296% YoY and a 21% MoM jump, with 1,002 units sold. This marked the company’s highest-ever monthly sales performance. Pakistan Suzuki Motors Company (PSMC) also posted strong results, with a 40% MoM and 85% YoY increase, reaching 7,040 units. The Alto model, in particular, was a key driver of PSMC’s success, with sales up by 80% YoY and 49% MoM.
Indus Motor Company (INDU) reported a 142% YoY and a 7% MoM increase in sales, selling 2,532 units, while Honda Atlas Cars (HCAR) saw its sales climb 230% YoY and 19% MoM to 1,514 units. In contrast, Hyundai Nishat Motors experienced a 34% YoY growth, but its MoM sales dipped by 26%, totaling 504 units.
In the motorcycle segment, sales of two- and three-wheelers also saw a substantial increase, rising by 35% YoY and 5% MoM to reach 137,693 units, the highest monthly sales in nearly two and a half years. This growth is largely attributed to falling inflation rates and an overall improvement in consumers’ purchasing power.
Tractor sales showed mixed results. The total number of tractors sold reached 1,733 units, which reflects a 67% YoY decline but a 61% MoM increase. The recovery in sales was driven by Millat Tractors (MTL), which saw a 94% MoM increase, reaching 1,439 units. On the other hand, Al Ghazi Tractors (AGTL) experienced a sharp 87% YoY decline and a 12% MoM drop. The overall improvement in tractor sales came after the Federal Board of Revenue (FBR) allowed tractors to be sold for non-agricultural purposes and increased the sales tax rate from 10% to 14%, which was aimed at streamlining the refund process for manufacturers.
Lastly, the truck and bus segment also showed robust growth, with sales rising by 102% YoY and 10% MoM, totaling 351 units in October 2024.
Overall, the data paints a picture of a thriving automotive market in Pakistan, fueled by favorable economic conditions and the introduction of innovative vehicle models. As financing options improve and consumer confidence rises, the growth trend is expected to continue in the coming months.
