ISLAMABAD: Pakistan’s automobile industry witnessed a robust performance in October 2024, with car sales soaring by 27% month-on-month (MoM) to 13,108 units, according to data from the Pakistan Automotive Manufacturers Association (PAMA). This marks a remarkable 112% increase in year-on-year (YoY) sales compared to October 2023, continuing the upward trajectory for the fiscal year with 40,693 units sold in the first four months—up 50% YoY from 27,162 units in the same period last year.
According to Topline Pakistan Research, the surge in sales is being attributed to improved auto financing options and a renewed sense of optimism in the market, as both consumers and manufacturers anticipate further growth with declining interest rates. Additionally, the introduction of new models, including Hybrid Electric Vehicles (HEVs) and fully electric vehicles (EVs), is expected to further drive market momentum in the coming months.
Among the key players, Sazgar Engineering (SAZEW) recorded the most impressive growth, with sales skyrocketing 296% YoY and 21% MoM to reach 1,002 units—its highest monthly sales ever. Pakistan Suzuki Motors Company (PSMC) also saw significant gains, with sales rising 40% MoM and 85% YoY to 7,040 units. The standout model contributing to PSMC’s success was the Alto, with sales jumping 80% YoY and 49% MoM.
Indus Motor Company (INDU) and Honda Atlas Cars (HCAR) also posted strong performances. INDU saw a 142% YoY increase in sales, reaching 2,532 units, while HCAR’s sales surged by 230% YoY, hitting 1,514 units. However, Hyundai Nishat Motor reported a mixed performance, with a 34% YoY increase but a 26% MoM drop in sales to 504 units.
The motorcycle segment continues to benefit from improved purchasing power due to falling inflation. Sales in the two- and three-wheeler category grew by 35% YoY and 5% MoM, totaling 137,693 units in October—the highest sales in 28 months.
The tractor industry showed signs of recovery as well, with sales up 61% MoM, reaching 1,733 units. The surge followed the Federal Board of Revenue’s (FBR) decision to rescind the SRO 563(1)/2022, allowing tractors to be sold for non-agricultural uses, coupled with an increase in the sales tax rate from 10% to 14%. However, despite the monthly recovery, the sector still recorded a 67% YoY decline in sales, primarily due to reduced demand from the agricultural sector.
The commercial vehicle segment also experienced solid growth, with truck and bus sales rising by 102% YoY and 10% MoM to reach 351 units in October 2024. This indicates a rebound in demand for commercial transportation amid improving economic conditions.
The outlook for Pakistan’s automotive market remains positive as interest rates are expected to decrease further, making financing more accessible. The continued introduction of new and more fuel-efficient models, particularly in the EV and HEV space, is anticipated to further boost consumer interest in the coming months.
With the sector showing broad-based growth across multiple segments, Pakistan’s automobile industry seems poised for continued recovery and expansion into 2025.
