Passenger car sales up 52% in January

KARACHI: Passenger car sales by PAMA members in the country surged by 52 per cent year-on-year in January 2025 compared to January 2024. For the first seven months of FY25, sales rose by 51 per cent, data revealed on Tuesday.

According to figures released by the Pakistan Automotive Manufacturers Association (PAMA), passenger car sales increased to 11,868 units in January 2025, compared to 7,802 units in January 2024. From July 2024 to January 2025, a total of 58,266 units were sold, marking a 51 per cent increase from the 38,464 units sold in the same period of FY24.

Sales in January 2025 also saw a 51 per cent jump compared to 7,868 units sold in December 2024. Mashood Ali Khan, an auto expert and former chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), attributed the rise in sales to renewed consumer interest at the start of the year. He noted that Japanese, Korean and Chinese car models were particularly popular.

However, he cautioned that the continuation of this trend would depend on the upcoming fiscal year’s budget. He also highlighted the stagnant tractor market, which has struggled due to the imposition of sales tax and failed to meet target sales volumes compared to last year.

The truck industry showed signs of recovery with growing demand linked to the construction sector.Increased bus imports by provinces were also noted. Khan suggested that if demand were strategically created and fulfilled through federal government initiatives, it could attract major automotive players and encourage investment. He further highlighted the potential for Pakistan to become an exporter of electric buses.

In January 2025, sales of 1,300cc and above cars rose by 35 per cent to 5,518 units compared to 4,091 units in January 2024.In the 1,000cc category, 717 units were sold (475 units of Suzuki Cultus and 242 units of Suzuki WagonR) against 593 units in the same month last year.

Sales of cars below 1,000 cc surged to 5,633 units compared to 3,118 units last year. Suzuki Alto sales alone increased to 5,039 units in January 2025 from 2,983 units in January 2024. Dewan Motors’ electric vehicle, Honri-Ve, recorded sales of 15 units in January 2025.

Bus and truck sales rose to 621 units in January 2025 compared to 242 units in January 2024.

The sale of jeeps and pickups increased to 5,127 units from 2,734 units during the same period last year. Conversely, tractor sales declined to 2,761 units from 4,020 units in January 2024.

Sales of rickshaws and motorcycles climbed to 139,161 units in January 2025, up from 104,619 units in the same month last year. Sazgar Engineering Works reported combined sales data for its three-wheelers and four-wheelers for December 2024 and January 2025, as it did not release figures in December.

Mashood Ali Khan highlighted the growing motorcycle segment, attributing it to the fact that most people cannot afford cars. He noted that the market offers a wide variety of motorcycles to cater to consumer demand.

He also recommended that the government impose a ban on trucks older than five years from entering major cities. This move, he suggested, would not only reduce accidents but also incentivise local manufacturers to produce new trucks.