Pakistan’s Car sales (as reported by PAMA) reached 9,820 units in December 2024, a 69% year-over-year rise but a 3% Month-over-Month decline. The Month-over-Month decline is primarily due to the end-of-year effect, with buyers postponing deliveries or purchases to obtain new-year registrations.
§ The YoY rise in car sales is driven by lowered interest rates, improved consumer confidence, and the introduction of newer variants and models.
§ This takes 1HFY25 sales to 60,676 units, a 54% YoY rise from 39,453 units in 1HFY24.
§ In 2024 car sales clock in at 125,050 units a 52% rise from 2023 sales of 82,215 units.
§ Data from Sazgar Engineering Works (SAZEW) has not been released yet; hence, the Dec numbers exclude SAZEW’s sales.
§ Among Non PAMA members, KIA Lucky Motors saw a 30-40% rise in sales in 2024 compared to 2023, as per our channel checks, with volumes expected at 6500-7000 units. Including KIA sales, industry car sales in 2024 is up 51%, we estimate.
§ Company wise: Indus Motor Company (INDU) was the only company to experience an MoM decline of 25% in Dec 2024, while all other companies saw both MoM and YoY increases in sales.
§ In the motorcycle segment, 2 and 3-wheeler sales increased by 43% YoY while down 2% MoM, totalling 118,091 units in Dec 2024.
§ The tractor industry recorded 7,030 units in sales, marking a 170% YoY and 105% MoM increase, primarily driven by the delivery of tractors under the Green Tractor Scheme.
§ Company-wise, Millat Tractors (MTL) achieved 4,686 units in sales, the highest monthly sales in nearly 7 years (since April 2018), reflecting a 123% YoY and 231% MoM rise in Dec 2024.
§ Meanwhile, Al-Ghazi Tractors (AGTL) recorded 2,344 units in sales, up 363% YoY and 17% MoM in Dec 2024.
§ Truck and bus sales were up 84% YoY but down 41% MoM, reaching 193 units in Dec 2024.
§ Auto sales have seen a recovery in the past few months, and from now on, we expect sales to post strong growth from Jan 2025 owing to the anticipated recovery in auto finance amidst falling interest rates.
Courtesy – Topline Pakistan Research