Month-on-month: car sales in Pakistan down 22% in November due to year-end effect

Car sales in Pakistan fell by 22% month-on-month (MoM) in November 2024, totaling 10,163 units, stated a report by brokerage house Topline Securities on Tuesday. However, on a year-on-year (YoY) basis, sales surged 57%, reflecting a significant rebound in demand compared to the same month of the previous year.

This brought sales for the first five months of FY25 (5MFY25) to 50,856 units, a 51% YoY increase from 33,637 units in 5MFY24.

“The MoM decline is mainly due to the end-of-year effect, as buyers delay deliveries or purchases to secure new-year registrations,” noted Myesha Sohail, an auto sector analyst at Topline.

Among automakers, Sazgar Engineering (SAZEW) reported the sharpest MoM drop of 42%, with sales falling to 584 units in November. Its production remained stable, declining only 1% MoM to 993 units.

Indus Motor Company (INDU) recorded a 13% MoM decline in sales, delivering 2,194 units in November. Despite the monthly dip, its YoY sales rose 129%, led by a surge in Toyota vehicle demand.

Pakistan Suzuki Motor Company (PSMC), the market leader, sold 5,374 units in November, reflecting a 53% YoY increase but a 26% MoM decline. Honda Atlas Cars (HCAR) also experienced a 27% MoM drop, with sales totaling 1,112 units, though its YoY sales grew by 10%.

Hyundai Nishat Motors bucked the trend, reporting an 11% YoY and 21% MoM rise in sales to 724 units, driven by a 45% jump in Tucson sales.

In a notable instance during the month, Dewan Farooque Motors (DFML) made headlines by selling 63 units of the newly launched locally assembled electric vehicle, Honri.

In other segments, two- and three-wheeler sales rose 36% YoY but fell 12% MoM to 120,484 units.

Tractor sales reached 3,428 units in November, down 2% YoY but up 98% MoM, supported by the withdrawal of SRO 563(1)/2022. Al Ghazi Tractors (AGTL) led the segment with 2,012 units, marking a staggering 584% MoM rise, while Millat Tractors (MTL) sold 1,416 units, down 2% MoM.

Truck and bus sales climbed 126% YoY but slipped 7% MoM to 328 units in November.

Looking ahead, Sohail expects a sales recovery in January 2025, driven by improved auto financing amid declining interest rates and deferred buying in the last months of 2024. However, December is likely to witness a further MoM decline due to the year-end effect.