Auto sales fall to 8.6k units, down by 35% MoM

§ In Jul’24, the automotive industry saw a decline in sales, dropping to 8,600 units—a 35% decrease MoM but a 60% increase YoY, according to PAMA.

§ The MoM decline is mainly attributed to the high base effect from Jun’24, when sales spiked due to a surge in pre-buying ahead of the increase in vehicle taxes, specifically WHT, in the FY25 federal budget.

§ Breaking down the segments, the 1,300cc and above category saw a 45% MoM decline, with sales dropping to 2,465 units. The 1,000cc segment experienced a 74% MoM decrease, totaling 235 units. The below 1,000cc segment also recorded a 33% MoM decline, with sales reaching 3,157 units.

§ Indus Motors Company Ltd (INDU) reported a 44% MoM decrease in volumetric sales for Jul’24, totalling 1,664 units. This decline was primarily driven by a significant 52% MoM drop in sales of the Corolla, Yaris, and Corolla Cross models and a 16% MoM decrease in sales of the Fortuner and Hilux models.

§ Pak Suzuki (PSMC) reported a 35% decrease in MoM, maintaining sales at 4,470 units. PSMC’s Cultus sales witnessed an 82% MoM drop. In addition, sales of Swift, Ravi, Wagon R, Alto and Bolan declined by 47%, 69%, 63%, 34% and 19%, respectively, on a MoM basis.

§ Moreover, Honda Atlas Cars (HCAR) depicted a 15% MoM decrease in Jul’24, due to a 20% MoM dip in Civic/City sales and a 25% MoM increase in Honda BRV/HRV sales.

§ Sazgar Engineering (SAZEW) registered a 5% MoM decrease in sales, recording 825 units sold. This decline is primarily attributed to a 4% MoM decrease in Haval sales.

§ Two-wheeler sales volumes declined by 5% MoM in Jul’24. Atlas Honda (ATLH) achieved sales of 70,255 units, showcasing a 12% MoM decrease.

§ Three-wheeler sales volumes decreased by 8% MoM in Jul’24. Sazgar Engineering (SAZEW) reported sales of 1,624 units in the three-wheeler segment, marking an 11% MoM decline.

§ Tractor sales depicted a decline of 65% on MoM basis in Jul’24. AGTL recorded a 40% MoM decrease in sales, amounting to 855 units. Meanwhile, MTL reported a 78% MoM decline, reaching 605 units.

Courtesy – AHL Research