By The automotive market in Pakistan has shown remarkable growth, with car sales reaching 9,820 units in December 2024, marking a 69% year-on-year (YoY) increase. However, a 3% month-on-month (MoM) dip was observed, attributed to seasonal factors, as buyers delayed purchases for new year registrations, according to Topline Securities.
Key Drivers of Growth
The YoY surge in car sales is attributed to several factors, including:
- Lower interest rates
- Improved consumer confidence
- Launch of new models and variants
These factors have also fueled growth throughout the first half of fiscal year 2025 (1HFY25), with total car sales reaching 60,676 units, a 54% increase from 39,453 units during the same period last year (1HFY24).
2024 Sales Highlights
The total car sales for 2024 stood at 125,050 units, a 52% increase compared to 82,215 units in 2023.
Company Performance
- Indus Motor Company (INDU) was the only company to report an MoM decline, with sales dropping 25% in December 2024.
- Non-PAMA member KIA Lucky Motors reported a 30-40% increase in sales during 2024, reaching an estimated 6,500 to 7,000 units.
With the inclusion of non-PAMA members and the anticipated release of data from Sazgar Engineering Works (SAZEW), overall industry car sales for 2024 are projected to show a 51% increase.
Motorcycles and Three-Wheelers: Steady Growth
The two-wheeler and three-wheeler segment demonstrated strong growth, with a 43% YoY increase in December 2024, totaling 118,091 units. However, there was a slight 2% MoM decline in sales.
Tractor Industry: Unprecedented Growth
The tractor industry recorded exceptional growth, driven by the Green Tractor Scheme, with sales soaring:
- 170% YoY and 105% MoM increase, reaching 7,030 units in December 2024.
- Millat Tractors (MTL) achieved its highest sales in nearly seven years, selling 4,686 units in December, reflecting a 123% YoY and 231% MoM increase.
- Al Ghazi Tractors (AGTL) also posted outstanding performance, with a 363% YoY and 17% MoM rise, selling 2,344 units.
Truck and Bus Segment
The truck and bus segment reported a mixed performance:
- 84% YoY growth, reaching 193 units in December 2024.
- A sharp 41% MoM decline was observed.
A Strong Recovery in the Automotive Market
Pakistan’s automotive market is experiencing a robust recovery, with significant growth across the car, motorcycle, and tractor segments. The steady rise in consumer confidence, government initiatives like the Green Tractor Scheme, and the introduction of new models and variants have contributed to this positive momentum.
As the market progresses into 2025, industry stakeholders remain optimistic about continued growth, further fueled by favorable economic conditions and enhanced consumer demand.
