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Monday July 22, 2024

Passenger car sales surge 138pc in June, down 16pc in FY24

By Shahid Shah
July 11, 2024
A representational image showing a man walking past a car showroom in Karachi on July 27, 2022.— Reuters
A representational image showing a man walking past a car showroom in Karachi on July 27, 2022.— Reuters

KARACHI: Pakistan’s passenger car sales (PAMA members) witnessed a remarkable surge of 138 per cent year-on-year in June 2024, reaching an 18-month high. This surge has been attributed to improved economic indicators and a favourable comparison to a low base from the previous year.

The increase in sales was primarily fuelled by positive economic indicators such as declining inflation with CPI in June 24 reaching to 12.6 per cent, leading to higher purchasing power and rising demand for auto financing, bolstered by a 150 bps decrease in policy rate to 20.5 per cent, stated a research report of Arif Habib Ltd.

In FY24, a total of 81,577 units were sold, down 16 per cent against 96,811 units sold during FY23.According to data released by the Pakistan Automotive Manufacturers Association (PAMA) on Wednesday, passenger car sales surged by 138 per cent in June 2024 to 10,128 units against 4,257 units in June 2023.

On month-on-month bases, June 2024 sales remained higher by 19 per cent to 10,128 units compared with the 8,487 units sold in May 2024.During this period, sales of 1300cc and above cars were recorded at 4,522 units, up 174 per cent compared with the same month of the previous year’s sales of 1,653 units.

In June 2024, 1,000cc cars recorded sales of 898 units, (526 units of Suzuki Cultus and 372 units of Suzuki WagonR) against 429 units in the same month last year.Below 1,000 cc vehicles recorded a sale of 4,708 units, higher by 116 per cent against 2,175 units last year. Suzuki’s Alto sold 4,352 units in June 2024, compared with 1,913 units in June 2023.

Buses and trucks saw an increase to 299 units in June 2024 from 149 units in the same month last year.The sale of jeeps and pick-ups increased to 3,156 units from 1,776 units sold during the same period last year.

Sales of tractors rose to 4,134 units from 2,990 units in June 2023. Tractor sales depicted an increase of 34 per cent on MoM basis in June 24. AGTL recorded a 94 per cent MoM surge in sales, amounting to 1,416 units. Whereas, MTL reported a 16 per cent MoM increase, arriving at 2,718 units.

The sale of rickshaws and motorbikes also increased to 89,895 units in June 24 against 82,941 units in the same period last year. Two-wheeler sales volumes declined by 25 per cent MoM in June 24. Atlas Honda (ATLH) achieved sales of 80,204 units, showcasing a 22 per cent MoM decrease.

Indus Motors Company Ltd (INDU) reported a MoM increase of 44 per cent in volumetric sales in June 24, clocking in at 2,957 units, with a 47 per cent MoM increase in Corolla, Yaris and Corolla Cross sales and 37 per cent MoM increase in Fortuner and Hilux sales.

Pak Suzuki (PSMC) reported a 15 per cent increase MoM, maintaining sales at 6,885 units. PSMC’s Cultus sales witnessed a surge of 130 per cent MoM. In addition, sales of Swift, Wagon R, Alto and Ravi increased by 32 per cent,47 per cent, 7.0 per cent and 11 per cent, respectively, on a MoM basis.

Moreover, Honda Atlas Cars (HCAR) depicted an 8.0 per cent MoM decrease in June 24, on account of 18 per cent MoM dip in Honda BRV/HRV sales and 6.0 per cent MoM decrease in Civic/City sales, respectively.

Sazgar Engineering (SAZEW) registered a 12 per cent MoM increase in sales, recording 871 units sold. This growth is primarily attributed to a 10 per cent MoM increase in Haval sales.An analyst at Topline Securities said, “Going forward, we believe that improvement in economic activity following the IMF’s new programme, a stable currency, and reduction in interest rates will lead to an improvement in car sales.”