Car sales jump by 81% in January
Pakistan’s auto industry is off to a great start in 2024. In January, car sales reached 10,500 units, up 81% from 5,816 units in December 2023. Sales of automobiles, excluding non-members of the Pakistan Automotive Manufacturers Association, totaled 11,700 units, a 72% increase from the previous month.
While PAMA car sales increased 5% year over year to 11,100 units in January 2023, they decreased 48% to 49,990 units in the first seven months of FY24 from 95,240 units in 7MFY23. Low consumer spending power, high auto financing costs, and rising car prices are some of the factors causing the fall. According to Sunny Kumar, Deputy Head of Research at Topline Securities, the demand for new year registrations in January drove up car sales to their highest level in eleven months.
Positively, tractor sales increased by 82% YoY to 27,225 units in 7MFY24, up from 3,814 units in January 2024, a 46% MoM and 12% YoY increase.
Muhammad Abrar Polani, an Arif Habib Limited Auto Analyst, ascribed the January 2024 sales surge to the buying power of the new year, the relaxation of import regulations, and the rise in affordability brought about by falling car prices. Since interest rates are expected to drop in March, which would facilitate easier access to auto finance, he expects additional sales rebound.
With the release of the new Corolla Cross, Indus Motors had a notable rise in automobile sales in January 2024, up 304% MoM to 2,762 units. Honda Car MoM sales increased by 49% as well, from 901 cars in December 2023 to 1,339 cars in January 2023.
Sales of 4,550 units were reported by Pak Suzuki Motors in January 2024, a 22% increase from 3,735 units in December 2023. Sales of motorcycles and three-wheelers increased by 27% MoM to 104,619 units in January–24, despite a 5% YoY fall in sales.
Adeel Usman, CEO of Regal Automobiles Industries Limited, predicted a continued move away from conventional internal combustion engines in the upcoming years due to the rise of SUVs with hybrid-electric gearboxes.
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