Car Sales in Pakistan Face 22% Decline in November 2024

The drop is largely attributed to the end-of-year

effect, where buyers delay car purchases

to take advantage of new year registrations

Web Desk

Karachi: According to figures from the Pakistan Automotive Manufacturers Association (PAMA), car sales in Pakistan reached 10,163 units in November 2024, reflecting a significant 57% year-over-year (YoY) increase. However, the month saw a 22% month-over-month (MoM) decline. Cumulative sales for the first five months of FY25 reached 50,856 units, marking a 51% YoY increase compared to 33,637 units in FY24’s 5MFY.

Factors Behind MoM Decline

The MoM drop is largely attributed to the end-of-year effect, where buyers delay car purchases to take advantage of new year registrations.

Company Performance Overview

• Sazgar Engineering (SAZEW) experienced the most significant MoM drop of 42%, with sales of 584 units in November 2024. Production remained relatively stable, with a slight 1% MoM decline to 993 units.
• Indus Motor Company (INDU) saw a 13% MoM decrease to 2,194 units but reported a 129% YoY increase, driven by a surge in Toyota sales.
• Pakistan Suzuki Motors Company (PSMC) sold 5,374 units, reflecting a 53% YoY increase but a 26% MoM drop.
• Honda Atlas Cars (HCAR) recorded 1,112 units sold, a 10% YoY rise, despite a 27% MoM fall.
• Hyundai Nishat Motor was the only automaker to report a MoM increase, rising 21% to 724 units, with a notable 45% jump in Tucson sales.

Electric Vehicle Sales

Pakistan also began to see sales of locally assembled electric vehicles, with Dewan Farooque Motors (DFML) selling 63 units of its newly launched Honri.

Motorcycle and Tractor Sales

• Motorcycle Sales: The two- and three-wheeler segment saw a 36% YoY increase in November 2024, despite a 12% MoM decline, totaling 120,484 units sold.
• Tractor Sales: Total tractor sales were 3,428 units, a 2% YoY decline, although a recovery of 98% MoM. This rebound was due to the rescindment of SRO 563(1)/2022. Al Ghazi Tractors (AGTL) saw impressive growth, with 2,012 units sold (up 187% YoY, 584% MoM). Millat Tractors (MTL) reported 1,416 units sold, reflecting a 50% YoY decline and a 2% MoM decline.

Outlook for 2025

Looking ahead, sales are expected to show strong growth starting January 2025, driven by a recovery in auto finance and decreasing interest rates. However, December 2024 may see a slight MoM dip due to end-of-year purchasing behavior.

Key Statistics

Truck and bus sales: 328 units (+126% YoY, -7% MoM)

5MFY25 car sales: 50,856 units (+51% YoY)

Tractor sales for 5MFY25: 10,367 units (-50% YoY)