Passenger car sales surge by over 58% in Pakistan

In January 2024, there was an outstanding surge in passenger car sales, increasing by 58.71 percent month-on-month (MoM) to reach 7,802 units, surpassing the 4,916 units recorded in December 2023, as per the latest data from the Pakistan Automotive Manufacturers Association (PAMA).

On a year-on-year (YoY) basis, car sales also showed a positive trend, showing a 29.58 percent development linked to January 2023, with 6,021 cars sold.

However, the increasing sales for the first seven months of fiscal year 2024 (7MFY24) amounted to 38,464 units, sparkly 49 percent decrease from the total sales in the same period of the previous fiscal year (7MFY23).

During 7MFY24, the total production of passenger cars recorded a decline of 47.6 per cent YoY, reaching 40,400 units, compared to 77,101 units in 7MFY23.

In January alone, production increased expressively by 44.48 per cent MoM to 9,614 units, compared to 6,654 units in December 2023. YoY, the production also showed an uptick of 67.99 per cent compared to January 2023’s production of 5,723 units.

The revival in the auto industry in Pakistan is evident, with various challenges such as high inflation, currency depreciation, low demand, and political uncertainty being addressed.

The State Bank of Pakistan’s decision to ease import restrictions has contributed to the sector’s recovery.

Breaking down the sales data, the ‘1300cc and Above’ category dominated, with 4,091 units sold in January. Within this category, Toyota (Corolla, Yaris, and Corolla Cross) led with 2,143 units, followed by Honda Cars (Civic and City) with 1,207 units.

The ‘Below 1000cc’ category saw the second-highest sales at 3,118 units, where Suzuki Alto accounted for 2,983 units and Suzuki Bolan contributed 135 units. The ‘1000cc’ segment observed 593 units in sales.

Truck sales perceived a significant surge, standing at 242 units, marking a 2.31x YoY increase linked to the same period last year.

Moving beyond cars, the sales of motorbikes and three-wheelers experienced a 27.02 per cent MoM growth, totaling 104,619 units in January 2024, compared to 82,362 units in December 2023.

However, on a year-over-year basis, there was a slight decline of 4.51 per cent from the 109,558 units sold in January 2023.

The production of motorbikes and three-wheelers in January reached 102,672 units, reflecting a 22.13 per cent MoM increase but a 5.38 per cent YoY decrease.

It’s noteworthy that Honda played a significant role in both the production and sales of two-wheelers and three-wheelers in January, reporting 92,041 units in sales and 90,898 units in production.