Car sales in Pakistan surge 69% YoY in December

Car sales in Pakistan rose by 69% year-on-year (YoY) in December 2024, reaching 9,820 units, according to the Pakistan Automotive Manufacturers Association (PAMA). 

However, sales fell by 3% month-on-month (MoM), which analysts attribute to end-of-year buyer delays in favor of new year registrations.

In 2024, total car sales were recorded at 125,050 units, a 52% increase from 82,215 units in 2023. Lowered interest rates, improved consumer confidence, and the introduction of new variants and models fueled this growth. 

For the first half of fiscal year 2025 (1HFY25), car sales totaled 60,676 units, up 54% from 39,453 units in 1HFY24.

Data for December from Sazgar Engineering Works (SAZEW) was not available, and its figures are excluded. Non-PAMA member KIA Lucky Motors saw an estimated 30-40% sales growth in 2024, with volumes ranging between 6,500 and 7,000 units. Including KIA sales, overall industry sales in 2024 are estimated to have grown by 51%.

Among companies, Indus Motor Company (INDU) experienced a 25% MoM decline in December 2024, while all other manufacturers recorded both MoM and YoY sales increases.

In the motorcycle segment, sales of two- and three-wheelers increased by 43% YoY but fell 2% MoM, totaling 118,091 units in December 2024. 

Tractor sales surged significantly, with the industry recording 7,030 units, a 170% YoY and 105% MoM rise. This growth was driven by the Green Tractor Scheme deliveries.

Millat Tractors (MTL) achieved its highest monthly sales since April 2018, selling 4,686 units, reflecting a 123% YoY and 231% MoM increase. Al Ghazi Tractors (AGTL) recorded 2,344 units in December, up 363% YoY and 17% MoM.

Truck and bus sales rose 84% YoY but declined 41% MoM, reaching 193 units in December.

The auto sector has shown a steady recovery in recent months. Analysts expect sales to grow further in 2025, supported by improved auto financing conditions amidst declining interest rates.