· In FY24, the auto sector struggled with sluggish demand recovery as total industry sales dipped by 6%, reaching 151,983 units. The industry saw muted sales throughout the year, total industry sales remained subdued despite a low base effect caused by supply chain challenges and plant shutdowns from the previous year, resulting in a weak recovery.

· INDU reported total sales of 31,104 units, marking a 33%YoY decrease. However, SAZEW 4-wheeler sales reported at 5,374 units in FY24, marking 2.94xYoY increase.

· Total industry sales reached 17,717 units in June’24, marking a 24% increase compared to the previous month. Major improvement in volumes were witnessed by Passenger cars marking an increase of 2.3xYoY/19%MoM.

· Auto sales saw a monthly increase, yet the sector is anticipated to require additional time for complete recovery. Our top pick remains ‘INDU’ with June’25 TP of PkR2,100/sh..

Courtesy – AKD Research