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Pakistan car sales touched 17 months high at 10.9k units

Pakistan car sales (as reported by PAMA) touched 17 months high, recording sales of 10.9k units in May 2024, up 4% MoM and 100% YoY.

The MoM jump in car sales is primarily due to an increase in the sales of Sazgar Engineering (SAZEW), with its Haval variant recording sales of 779 units, up 43% MoM. Honda Atlas Cars (HCAR) also recorded increase of 18% MoM to 1,187 units in May-2024.

Pak Suzuki (PSMC) and Hyundai Nishat Motor sales remained flat MoM at 6,010 units and 683 units, respectively. However, Indus Motors (INDU) sales were down by 1% MoM to 2,047 units in May-2024.

On a YoY basis, the significant jump of 100% in total car sales is attributed to a low base from last year amid plant shutdowns.

This takes 11MFY24 PAMA car sales to 90,544 units down 25% YoY compared to 120,845 units in 11MFY23. The decline is primarily due to escalating car prices, expensive auto financing, and the low purchasing power of consumers.

Going forward, we believe that improvement in economic activity following the IMF’s new program, a stable currency, and reduction in interest rates will lead to an further improvement in car sales.

Pakistan bike sales were up 10% MoM and 22% YoY to 118,811 units in May-2024. Atlas Honda (ATLH) recorded sales of 103K units, up 9% MoM and 19% YoY. This takes total industry sales to 1.0mn units down 4% in 11MFY24 due to higher bike prices, and low purchasing power of consumers.

Among tractors, Millat Tractors (MTL), recorded sales of 2,347 units up 56% YoY and 15% MoM, while Al Ghazi Tractors (AGTL) which recorded sales of 731 units down 64% YoY and 30% MoM in May-2024. This takes total tractor industry sales in 11MFY24 to 41,360 units up 48% YoY due to low base of last year amid floods.

Trucks & Buses sales were also up 8% MoM and 61% YoY to 247 units in May-2024. This takes 11MFY24 industry sales to 2,365 units, down 36% YoY.

Courtesy – Topline Research

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