In a development that underscores the cyclical nature of Pakistan’s automotive market, Sazgar Engineering Works Limited (SAZEW) reported a significant decline in its four-wheeler sales for November 2024. The company, which has become a notable player in Pakistan’s evolving auto sector through its partnership with Chinese automaker Great Wall Motors, saw its monthly sales drop by 42% compared to the previous month.
According to a flash note released by Topline Securities, SAZEW sold 584 units of its Haval brand vehicles in November, marking a substantial decrease from October’s figures. This decline, however, is largely attributed to what industry experts call the “year-end effect,” a phenomenon well-known in Pakistan’s automotive circles.
The year-end effect refers to a common trend where potential car buyers postpone their purchases in the final months of the year, preferring to wait for vehicles with new-year registrations. This preference is driven by the perception that newer registrations enhance resale value, a crucial consideration in Pakistan’s price-sensitive auto market.
Asad Ali, an auto sector analyst at a leading brokerage firm, explained, “It’s a pattern we observe every year. Customers often delay their purchases in November and December, aiming for deliveries with the print of the new year. This trend is particularly pronounced in the four-wheeler segment.” The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
