Quick Summary
In September, Pakistan witnessed a notable uptick in car and motorcycle sales, signifying a promising trend in the automotive industry. The Pakistan Automotive Manufacturers Association (PAMA) released data showing a 10% increase in car sales compared to the previous month. This boost in sales can be attributed to several factors, including improved access to raw materials and changes in import regulations. However, year-on-year figures paint a different picture, with significant declines due to various demand challenges.
Key Data Highlights
Car Sales: Month-on-Month Comparison
- Car sales in Pakistan surged by 10% in September compared to August.
- September recorded 8,312 units sold, up from 7,579 units in August.
- In August, car sales increased by 49%.
- The automotive industry benefited from more accessible access to raw materials, primarily due to relaxation in regulations concerning Letters of Credit (LCs) for imports.
Year-on-Year Comparison
- Car sales showed a stark year-on-year decline of 26% compared to the same period in the previous year.
- In the first quarter of fiscal year 2024, sales were down by 40% compared to the same period the previous year.
Challenges in the Auto Industry
- High car prices, costly auto financing, and a surge in taxes have led to a year-on-year decline in car sales.
- Demand challenges persist due to these factors, resulting in a decline in sales.
Manufacturer Insights
- Honda Atlas Car recorded the highest increase in car sales at 99% month-on-month (MoM), reaching 1,342 units in September.
- Pak Suzuki was the only manufacturer that recorded a decline of 1% MoM.
- Other variants, including Ravi, Bolan, and Cultus, saw increases of 58%, 38%, and 9%, respectively.
- Hyundai sales increased by 5% MoM.
- Indus Motor, the assembler and seller of Toyota vehicles, sold 3% more vehicles in September.
- Among tractors, Al Ghazi Tractors (AGM) and Millat Tractors (MTL) recorded increases of 50% and 29% MoM, respectively.
- Truck and bus sales were up by 11% MoM but down by 51% year-on-year.
- Pakistan’s motorcycle sales increased by 21% MoM and 8% YoY in September, with Atlas Honda (ATLH) recording impressive sales of 95,056 units, higher by 27% MoM and 12% YoY.
The automotive industry in Pakistan has shown signs of improvement in September, driven by easier access to raw materials and adjustments in import regulations. While monthly figures demonstrate positive growth, the year-on-year perspective reveals the ongoing challenges of high prices, costly auto financing, and increased taxes. Nevertheless, the market remains dynamic, with manufacturers like Honda Atlas Car and Atlas Honda making significant gains in car and motorcycle sales. It will be interesting to see how these trends continue to evolve in the coming months.
For the sale and purchase of new and used vehicles in Pakistan, check out OLX Motors.
Suggested further reading for you:
Suzuki Overtakes Honda, Toyota, and the Rest With a Phenomenal 75% Surge in Monthly Sales!
