ISLAMABAD: Pakistan’s automobile sector has witnessed a significant 50% year-on-year (YoY) increase in car sales for the first eight months of fiscal year 2025 (8MFY25), reaching a total of 89,770 units compared to 59,700 units during the same period in fiscal year 2024.
February 2025 car sales stood at 12,084 units, reflecting a 24% YoY increase, but a 29% month-on-month (MoM) decline.
The MoM decrease is largely attributed to the high base effect from January sales, which are typically higher due to buyers delaying purchases from December to secure new-year registrations. Additionally, Sazgar Engineering Works reported cumulative sales data for both December 2024 and January 2025, creating a high base effect.
The YoY increase in sales has been driven by lower interest rates, improved consumer confidence, and the introduction of new car variants and models. Among non-PAMA members, KIA Lucky Motors reported sales of approximately 850 units for February 2025.
Company-wise, all manufacturers saw YoY increases, though MoM sales declined, except for Hyundai. Sazgar Engineering experienced a 2.13x YoY rise but saw a 56% MoM decline, with February sales reaching 883 units.
Pak Suzuki Motor Company (PSMC) saw a 9% YoY increase but a 35% MoM drop, likely due to record Alto sales in January.
Indus Motor Company (INDU) recorded a 28% YoY rise but a 22% MoM drop due to the high sales of the Toyota Hilux in January.
Honda Atlas Cars (HCAR) posted a 35% YoY rise but a 7% MoM decline, while Hyundai Nishat saw a 35% YoY increase and a 1% MoM rise.
Meanwhile, sales of two- and three-wheelers increased by 35% YoY but fell 9% MoM to a total of 126,699 units in February. Tractor sales, however, saw a significant 44% MoM and 54% YoY decline, totaling 1,534 units. Truck and bus sales rose 38% YoY but decreased by 22% MoM, reaching 486 units.
Looking ahead, the auto sector’s uptrend is expected to continue as new car variants enter the market and auto financing recovers amid lower interest rates.
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