Passenger car sales rise by 62% in November

According to the Pakistan Automotive Manufacturers Association (PAMA), passenger vehicle sales in the country increased by 62% year over year (YoY) basis in November 2024 compared to November 2023.

Seven thousand nine hundred nine units were sold in November 2024, compared to 4,875 units in the same month last year. However, sales in November dropped by 25% compared to the 10,557 units sold in October.

For the first five months of the 25th fiscal year (July to November 2024), passenger car sales rose by 50% to 38,534 units compared to 25,746 units last year. “This positive trend gave momentum to the industry as it steadily got back on track.

Forecasts suggested better performance in January-June 2025 than the previous fiscal year, indicating recovery for the industry,” says Mashud Khan, an auto industry expert. However, he notes that these trends appear temporary in terms of long-term sustainability.

Challenges like political instability and limited purchasing power still prevent successful and sustainable growth. An expected interest rate cut this month provides relief to businesses and consumers.

Sales of cars over 1,300cc reached 3,930 units, a 93% increase from November 2023 sales of 2,033 units. Sales of 1,000cc vehicles dropped to 381 units compared to 729 units last year.

Vehicles with engine displacement less than 1,000cc record sales of 3,598 units, a 70% increase from 2,113 units in November 2023. As of November 2024, 63 Dewan Honri-V electric vehicles were sold.

Khan says of electric vehicles (EVs), “The introduction of locally assembled EVs is an important development.” While this is a step toward modernization, these vehicles mainly target the elite.

“To make EVs accessible to more people, manufacturers must focus on affordability. Additionally, the lack of infrastructure, including charging stations, remains a major barrier to widespread adoption,” he added.

The market for two-wheeled electric vehicles has great potential, especially if manufacturers offer them at affordable prices. Khan notes that this segment helps remove affordability gaps and promotes sustainability.

The automotive sector shows promising signs, but sustainable growth depends on addressing structural and economic challenges and receiving government support, states Khan. Bus and truck sales rose to 328 units in November 2024 from 145 units in November 2023.

Jeep and pick-up sales increased to 2,191 units from 1,600 units during the same period in 2023. Tractor sales declined to 3,428 units from 3,510 in November 2023. Tractor sales for Q5FY25 dropped by 50% to 10,367 units compared to 20,806 units in the same period last year.

Company-wise, Al-Ghazi Tractors (AGTL) recorded sales of 2,012 units, up 187% year-on-year and 584% month-on-month. Millat Tractors (MTL) recorded sales of 1,416 units, down 50% year-on-year and 2% month-on-month.

Sales of auto-rickshaws and motorcycles reached 120,484 units in November 2024, up from 88,493 units in the same period in 2023.

Meesha Sohail of Topline Securities said that the month-on-month decline mainly happened due to the year-end effect, with buyers delaying purchases to register vehicles in the new year.

Sazgar Engineering (SAZEW) records the most significant month-on-month decline of 42% to 584 units in November 2024, while production remains almost flat, down 1% month-on-month at 993 units. Indus Motor Company reports a 13% month-on-month decline to 2,194 units in November 2024, with strong Toyota sales showing a 129% year-on-year growth.

Suzuki Motors Pakistan reported sales of 5,374 units, up 53% year-on-year but down 26% month-on-month. Honda Atlas Cars records sales of 1,112 units, down 27% month-on-month but up 10% year-on-year.

Hyundai Nishat Motor reported sales of 724 units in November 2024, up 11% year-on-year and 21% month-on-month, driven by a 45% increase in Tucson sales.

“Looking ahead, we expect significant growth in sales from January 2025 due to recovering auto loans from lower interest rates. However, December 2024 may see a slight month-on-month decline due to year-end effects,” says Sohail.