PAMA reported auto sales of 10,297 units in September, up 24% YoY and 18% MoM. This brings total sales for 1QFY25 to 27,585 units, an increase of 31% YoY, mainly due to the absence of import restrictions. Notably, a 37% improvement in Suzuki sales contributed to the uplift, driven primarily by Alto sales. Combined with a 26% MoM increase in two—and three-wheelers, this is an encouraging sign that the market has started to recover gradually.
INDU: Toyota’s sales witnessed an 11% MoM increase (48% YoY), primarily driven by the sales of the Corolla, Yaris, and Cross models, which were cumulatively up 20% MoM. Toyota’s market share pulled back slightly by 1 ppt MoM to 23% in September. Due to supply chain challenges, the company experienced a five-day shutdown from September 26-30, 2024.
HCAR: Honda’s sales improved by 11% MoM but declined by 5% YoY. The SUV segment saw a sharp increase of 68% MoM, which helped bolster overall sales, despite weaker growth in the sedan segment, which was up 7% MoM. HCAR’s market share fell by 1 ppt MoM to 12%
SAZEW: After posting robust sales growth last month, four-wheel sales retracted 13% MoM but are still up 2.75x YoY, totaling 827 units. Its market share in the four-wheel segment was recorded at 8%, a decline of 3 ppt MoM. In contrast, three-wheel sales were encouraging, rising by 32% MoM (2.1x YoY) to 2,168 units.
The tractor industry: Cumulative tractor sales showed significant weakness, falling 60% MoM to 1,076 units. Both MTL and AGTL experienced notable declines, with MTL down 39% MoM and AGTL down 77% MoM. Despite this, MTL improved its market share to 69%, benefiting from a smaller drop in sales compared to its peer, whose market share fell by 23ppt to 31%
September continues the encouraging trend of improving volumes seen last month, likely supported by declining rates for auto financing and attractive instalment plans or promotional price cuts initiated by OEMs. Several auto manufacturers have announced new model launches in the coming months, further stimulating demand. Our top pick is INDU (TP: PKR 1,910/sh), which boasts a robust balance sheet and benefits from high margins on the Hybrid Corolla Cross.
Courtesy – IMS Research