Auto sales surge 61% YoY in January, driven by lower interest rates, new models

Pakistan’s auto sector witnessed a sharp increase in sales, with cars, pickups, vans, and light commercial vehicles (LCVs) surging 61% year-on-year and 73% month-on-month to 17,010 units in January. 

This surge includes previously unreported December 2024 sales from Sazgar Engineering Works (SAZEW), which contributed to the overall boost in January figures.

According to Topline Securities, the month-on-month growth is largely attributed to the low base effect, as December sales tend to decline with buyers delaying purchases for new-year registrations. The year-on-year growth, however, was driven by declining interest rates, improving consumer confidence, and the introduction of new vehicle models.

In the first seven months of FY25, car sales reached 77,686 units, marking a 55% increase compared to 49,989 units during the same period last year. 

Company-wise, all major automakers reported both monthly and annual sales increases. SAZEW recorded a 2.75-fold rise in sales, reaching 6,201 units in 7MFY25 from 2,253 units a year earlier.

Pak Suzuki Motor Company (PSMC) reported an 81% increase in sales over the past two months and a 37% month-on-month rise, largely driven by the Suzuki Alto, which hit a two-year high in sales, last seen in December 2022. 

Indus Motor Company (INDU) also experienced a strong performance, posting a 21% year-on-year and 100% month-on-month increase, primarily due to high sales in the Fortuner and IMV segments. 

Toyota Hilux sales, in particular, surged to 931 units, marking a two-year peak.

Honda Atlas Cars (HCAR) recorded a 65% annual and 99% monthly rise, while Hyundai Nishat’s sales grew by 25% year-on-year and 14% month-on-month. 

Meanwhile, sales of two and three-wheelers climbed to 139,161 units in January 2025, marking an 18% increase month-on-month and a 33% rise year-on-year, reaching a 2.5-year high.

However, the tractor industry faced a downturn, with total sales dropping by 28% year-on-year and 61% month-on-month, reaching 2,761 units. 

Truck and bus sales rebounded significantly, recording a 2.57-times increase year-on-year and a 3.22-times month-on-month jump, with total sales hitting 621 units—the highest since January 2022.

Analysts expect the upward trend in auto sales to continue as auto financing benefits from lower interest rates and new vehicle variants enter the market.