In June 2024, sales of automobiles, including cars, jeeps, sport utility vehicles, and trucks, reached an 18-month high of 13,284 units in Pakistan, indicating a gain of 21% month over month and 120% year over year.
Volumetrically, the growth in automobile sales is mostly attributable to two companies: Indus Motors Company, whose sales increased by 44% to 2,957 units, and Pak Suzuki Motor Company Ltd., whose sales increased by 15% to 6,885 units in June of this year.
Sazgar Engineering Works (SAZEW) had a 12 percent increase in sales with 871 units, while Hyundai Nishat Motor recorded 1,059 units sold, up 55 percent month over month. June 2024 sales figures for only Honda Atlas Cars Limited (HACL) showed a decrease of 8% month over month to 1,095 vehicles.
According to Myesha Sohail of TopLine Securities, the notable increase in automobile sales of 120 percent year over year (YoY) can be attributable to a low base from the previous year caused by factory shutdowns.
Due to rising automobile prices, high auto financing costs, and customers’ poor purchasing power, total sales of cars, jeeps, vans, and trucks during FY24 decreased by 18% to 103,827 units YoY, the lowest sales in 15 years, she stated.
Ms. Sohail thought that more automobile sales would result from improved economic activity brought about by the IMF’s new program, a stable currency, and lower interest rates.
In June 2024, bike sales increased by 8% year over year to 89,895 units, despite a 24% month-on-month decline. Due to customers’ limited purchasing power, Atlas Honda Ltd. (AHL) reported sales of 80,000 units, down 22% MoM and up 7% YoY, bringing the industry’s total sales to 1.15 million units, down 3% in FY24.
According to her, the low base of last year due to floods caused the tractor industry’s sales to rise to 4,134 units in June 2024, up 28% YoY and 34% MoM. Meanwhile, FY24 sales came in at 45,494 units, up 47% YoY.
Additionally, sales of trucks and buses increased to 299 units in June 2024, up 21% MoM and 101% YoY. Industry sales for FY24 are now 2,664 units, a 31% YoY decrease.
