The automotive industry in Pakistan showed a mix of growth and decline in November 2024, with car sales totaling 10,163 units. This represents a 57% year-on-year (YoY) increase but a 22% month-on-month (MoM) decline. Sales for the first five months of FY2025 reached 50,856 units, marking a 51% YoY rise compared to 33,637 units in the same period of FY2024.
Passenger Car Segment Overview
The MoM decline is primarily attributed to the year-end effect, where buyers delay purchases to register their vehicles in the new year. Here’s how individual automakers performed:
- Sazgar Engineering Works (SAZEW): Sales fell 42% MoM to 584 units, despite stable production, which decreased only 1% to 993 units.
- Indus Motor Company (Toyota): Delivered 2,194 units, marking a 13% MoM drop but a significant 129% YoY increase, driven by robust Toyota sales.
- Pakistan Suzuki Motors Company (PSMC): Sold 5,374 units, a 53% YoY rise but a 26% MoM decline.
- Honda Atlas Cars (HCAR): Sales reached 1,112 units, reflecting a 10% YoY rise but a 27% MoM drop.
- Hyundai Nishat Motors: Bucked the trend with a 21% MoM increase and an 11% YoY rise to 724 units. Tucson sales surged 45%, boosting Hyundai’s performance.
- Dewan Farooque Motors (DFML): Sold 63 units of its newly launched Honri electric vehicle, marking the debut of locally assembled EVs in Pakistan.
Motorcycles and Tractors Performance
- Two- and Three-Wheelers: Sales totaled 120,484 units, showing a 36% YoY increase but a 12% MoM decline.
- Tractor Sales: Tractor sales demonstrated mixed results. While November sales dropped 2% YoY, they recovered significantly with a 98% MoM rise to 3,428 units.
- Al-Ghazi Tractors (AGTL): Experienced a 187% YoY and 584% MoM increase.
- Millat Tractors (MTL): Witnessed a 50% YoY decline and a slight 2% MoM drop.
- Tractor sales in the first five months of FY2025 stood at 10,367 units, reflecting a 50% YoY decline.
Truck and Bus Sales
The commercial vehicle segment reported 328 units sold, with a 126% YoY increase but a 7% MoM drop in November 2024.
Market Outlook
The auto industry is expected to rebound strongly in January 2025, driven by easing auto financing and decreasing interest rates. However, December 2024 may continue to show a slight MoM decline due to ongoing year-end effects.
The performance of Pakistan’s auto sector highlights shifting consumer behavior and the impact of macroeconomic factors, paving the way for potential recovery in the coming months.
Fahad, a dynamic entrepreneur and fervent marketing enthusiast, channels his passion for contemporary trends into captivating written pieces. Beyond the business realm, he finds solace in the exhilaration of travel and the strategic thrill of tennis during leisure moments. Connect with Fahad’s insights on trending topics via his Twitter handle @fahad164. For inquiries and collaboration opportunities, reach out to him at fahad164@gmail.com or fahad@themediaparadigm.com.
