Car Sales Likely to Increase by 22% in Sep 2024

Staff Report:
Car sales are expected to increase by 22% in September 2024. The provisional auto sales figures indicate that sales of four leading car assemblers are expected to rise by 22% month-on-month to 9,580 units in September 2024. The monthly sales growth is primarily driven by promotions on SUVs, increased purchasing power due to lower inflation, and lower interest rates. On a quarterly basis, sales for the first quarter of FY25 are expected to increase by 36% year-on-year to 25,353 units, driven by a low base effect and improvement in economic indicators.

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Indus Motors (INDU) is expected to report 2,360 units, an increase of 11% month-on-month in September 2024. We believe the price promotion offer on the Corolla Cross lifted sales, clocking in at 430 units, which is a twofold increase month-on-month. Honda Atlas Cars (HCAR) sales are expected to reach 1,270 units, also up 11% month-on-month during September 2024. The increase is mainly due to higher sales of the City and Civic models, with 1,143 units sold, reflecting a 7% month-on-month increase. SUV sales also showed strong growth of 68% month-on-month.

Pak Suzuki (PSMC) sales are projected to reach 5,015 units, up 37% month-on-month. This increase is primarily attributed to higher Alto sales, which rose by 56% month-on-month. Additionally, September sales improved due to a low base effect amid the low availability of raw materials during the previous month.