Car sales in Pakistan witnessed a 22% month-on-month (MoM) decline in November 2024, with total sales recorded at 10,163 units, according to data from the Pakistan Automotive Manufacturers Association (PAMA). Despite the MoM drop, sales showed a significant 57% year-on-year (YoY) increase, taking 5MFY25 sales to 50,856 units, a 51% rise YoY from 33,637 units in the same period last year. However the impressiveness of the YoY figure is mitigated due to restrictions on imports, in FY24.
The decline is largely attributed to the year-end impact, as buyers delay purchases to secure new-year registrations.
Company-Wise Breakdown
Sazgar Engineering (SAZEW):
Sales dropped 42% MoM to 584 units while production remained stable, with a slight 1% MoM decrease to 993 units.
Indus Motor Company (INDU):
Indus Motors, the manufacturers of Toyota and Daihatsu, reported 2,194 units, marking a 13% MoM decline. On a YoY basis, sales rose 129%, driven by a substantial jump in Toyota vehicle sales.
Pakistan Suzuki Motor Company (PSMC):
PSMC recorded 5,374 units, reflecting a 26% MoM fall but a 53% YoY increase.
Honda Atlas Cars (HCAR):
For Honda, sales reached 1,112 units, a 27% MoM drop but a 10% YoY rise.
Hyundai Nishat Motors:
Hyundai sold 724 units, showing an 11% YoY and 21% MoM rise, buoyed by a 45% increase in Tucson sales. Hyundai was the only company to report a MoM increase during November.
Dewan Farooque Motors (DFML):
Sold 63 units of the newly launched locally-assembled electric vehicle, Honri, marking the beginning of its EV sales in Pakistan.
Other Vehicles
Motorcycles & Three-Wheelers:
For motorcycles and three-wheelers, sales stood at 120,484 units, up 36% YoY but down 12% MoM.
Tractors:
The industry reported 3,428 units, down 2% YoY but recovering 98%. According to Topline securities, the decrease is mainly due to an increase in sales tax on tractors.Â
Experts forecast strong recovery in January 2025, driven by improving auto financing conditions amidst declining interest rates. However, December 2024 may see a continuation of the MoM decline due to the year-end registration impact.
