Annual auto sales surge despite monthly slump
- By Usman Hanif -
- Sep 10, 2024
KARACHI: The automotive industry in Pakistan witnessed a significant revival in August 2024, with total auto sales climbing by 15% to 8,699 units compared to the same period last year, according to data from the Pakistan Automotive Manufacturers Association (PAMA).
However, auto sales remained nearly stagnant in August 2024 compared to July 2024, showing only a 1% increase as the sector continues to recover from last year’s challenges.
In August 2024, the Pakistani automotive industry saw a 15% year on year (YoY) growth, attributed primarily to the low base effect caused by the hurdles faced in the previous year, said AHL Research. These challenges included restrictions on opening letters of credit (LCs) and low demand, which led to plant shutdowns across the industry. On a month on month (MoM) basis, sales grew by a mere 1%.
“The increase in auto sales is due to newer variants in the market and a lower base effect, said Topline Securities. Sazgar Engineering (SAZEW) saw the most significant rise of 606% YoY and 9% MoM to 953 units in August 2024. This marks the second-highest monthly sales for SAZEW, just behind the 967 units sold in Jan 2024.
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Breaking down the auto sales data by vehicle segments, cars with engine sizes of 1,300cc and above saw a robust 35% MoM increase, totalling 3,330 units sold. The 1,000cc category also posted a strong 37% MoM rise, with 321 units sold. However, the below-1,000cc segment recorded a 12% MoM drop, with sales falling to 2,766 units.
Among the key players in the market, Indus Motors Company Ltd (INDU) registered a 28% MoM increase in auto sales, with a total of 2,129 units sold. This growth was driven by a 42% MoM increase in the sales of the Corolla, Yaris, and Corolla Cross models, along with a 1% uptick in Fortuner and Hilux sales.
Pak Suzuki Motor Company (PSMC) experienced an 18% MoM decline, selling 3,653 units in August. The steepest drop came from the Ravi model, which saw a staggering 99% MoM decline. The Alto also posted a 29% drop in sales. Despite this, Swift, Cultus, and Wagon R models surged with increases of 11%, 36%, and 37% respectively, while the Bolan achieved remarkable growth with a 158% MoM rise.
“Auto sector will show enhanced performance as interest rates hit single digits,” said auto expert Mashhood Ali Khan.
Honda Atlas Cars (HCAR) posted a 23% MoM increase, driven by a 36% MoM jump in Civic and City sales. However, sales of Honda’s BRV and HRV models fell by 47% MoM. Two-wheeler sales also saw an uptick in August 2024, with Atlas Honda (ATLH) selling 90,483 units, marking a 29% MoM growth.
Tractor sales boomed, showing an impressive 83% MoM increase. Al-Ghazi Tractors Ltd (AGTL) saw a 70% rise in sales to 1,452 units, while Millat Tractors Ltd (MTL) reported a 101% jump, totalling 1,218 units sold.
The overall recovery in auto sales, driven by strong growth in higher-engine categories and two-wheelers, reflects improved market conditions, though some segments still face headwinds.