Auto sales surged by 30% in January this year compared to the same period last year, driven by a combination of factors including a low base effect and the introduction of new models.
Despite this notable increase, industry data revealed that overall sales remained down by 49% in the first seven months of the fiscal year.
According to figures released by the Pakistan Automotive Manufacturers Association (PAMA), passenger car sales in January 2024 reached 7,802 units, marking a significant rise from 6,021 units in January 2023. However, sales for the first seven months of FY24 totaled 38,464 units, a steep decline from the 74,933 units sold during the same period in FY23.
The surge in January 2024 sales, which saw a 59% increase compared to December 2023, was attributed to various factors, including improved production capacity and resolved supply chain issues that plagued the industry in the previous year.
Mashood Ali Khan, an auto industry expert, highlighted that while January last year faced challenges with CKD and plant closures, this year’s sales uptick indicates positive momentum. However, Khan cautioned that economic and political uncertainties continue to hamper sustained growth in the sector.
Sales trends varied across vehicle categories, with the 1300cc and above segment witnessing a slight decline, while sales of 1000cc cars, particularly Suzuki’s Alto, experienced a substantial increase. Tractors also saw a notable uptick in sales, attributed to increased demand in the agriculture sector.
While the report noted that escalating car prices, expensive auto financing, and reduced consumer purchasing power contributed to the overall decline in sales for the first seven months of FY24, it also highlighted positive growth indicators, such as the surge in tractor sales and the launch of new models driving increased demand.
Additionally, the report mentioned that Indus Motors (INDU) recorded a significant increase in car sales, primarily due to the launch of the new Corolla Cross, indicating a positive response from consumers to new offerings in the market.
Overall, while challenges persist in the automotive industry, positive sales trends in certain segments and the introduction of new models suggest potential opportunities for growth and recovery in the sector.
