Pakistan’s car sales rise 10% MoM, fall 26% YoY in September

Car sales in Pakistan increased 10% in September from a month earlier, data from the Pakistan Automotive Manufacturers Association (PAMA) showed on Wednesday, boosted by ease in import of raw material.

In September, car sales (including LCVs, vans, and jeeps) stood at 8,312 units, as compared to 7,579 units recorded in August.

“On a month-to-month basis, there has been an improvement in sales volume like last month,” Deputy Head of Research at JS Research Waqas Ghani told Business Recorder.

In August, car sales had witnessed a 49% increase on a monthly basis.

“This positive trend can be attributed to automotive manufacturers experiencing more accessible access to raw materials, amid relaxation in regulations on the opening of Letters of Credit (LCs) for imports,” Ghani said.

However, on year-on-year basis, car sales showed a significant decline of 26% when compared with the same period last year.

Meanwhile, in the first quarter of FY24, the sales stood at 20,983 units, down 40% as compared to the same period the previous year.

“The automobile industry in Pakistan is facing demand challenges, primarily driven by high prices, costly auto financing, and a surge in taxes, resulting in a YoY decline in sales,” Ghani added.

Sunny Kumar, deputy head of research, was of the view that car sales increased on a monthly basis after some ease in CKD import issues.

“However, escalating car prices, expensive auto financing, and the low purchasing power of consumers are among the primary reasons for the decline in YoY sales,” Kumar wrote in his report for Topline Securities.

Company wise, Honda Atlas Car recorded the highest increase of 99% MoM, reaching 1,342 units in September 2023, primarily due to the low base of the previous month when the company sold only 674 units.

First month of FY24: Car sales down 57% YoY as rising prices suppress demand

Pak Suzuki was the only one that recorded a decline of 1% MoM to 4,234 units on 8% decline in sales of Alto in September. Other variants including Ravi, Bolan and Cultus recorded an increase of 58%, 38% and 9%, respectively. Swift and Wagon-R sales remained flat at 506 and 359 units.

Hyundai sales increased by 5% MoM as Porter sales went up by 48% to 177 units.

Indus Motor, which assembles and sells Toyota vehicles in Pakistan, sold 3% more vehicles as compared to August. Fortuner and Hilux reported a 27% increase in sales on a month on month basis.

Amongst tractors, Al Ghazi Tractors (AGM), and Millat Tractors (MTL) recorded an increase of 50% and 29% month on month respectively. This takes total tractor industry sales in the first quarter of fiscal year 2024 to 12,090 units – up 64% year on year due to the low base of last year amid floods.

Trucks and buses sales were up by 11% month on month while 51% down year on year to 185 units.

Pakistan bike sales were up 21% MoM and 8% YoY in September. Atlas Honda (ATLH) recorded sales of 95,056 units, higher by 27% MoM and 12% YoY.