2024

Exchange

Tax

Cars

Auto sales surge by 54 per cent amid easing interest rates


car sales surge in Pakistan

ISLAMABAD: The automotive sector saw strong sales performance during the first half of fiscal year 2025 (IHFY25), with the exception of the tractor segment, despite Sazgar Engineering Works Ltd not releasing its sales figures.

Sales of cars, light commercial vehicles (LCVs), pickups, and vans jumped 54 per cent, reaching 60,676 units in July-December 2024, compared to 39,453 units in the same period last year. This surge was largely driven by declining interest rates, rising remittances, and lower inflation.

In December 2024, car sales hit 9,820 units, marking a 69 per cent increase from December 2023, though sales were slightly down by 3 per cent month-on-month (MoM).

Myesha Sohail from Topline Securities attributed the MoM dip to typical year-end behaviour, with many buyers deferring purchases to take advantage of new-year registrations. She noted that the YoY growth was due to reduced interest rates, improved consumer confidence, and the availability of new models and variants.

Kia Lucky Motors saw impressive sales growth of 30-40 per cent in 2024, with estimated sales volumes reaching 6,500-7,000 units. Including Kia’s numbers, the overall car market experienced a 51 per cent increase in 2024 sales.

Indus Motor Company (IMC) was the only major player to experience a MoM decline in December 2024, with a 25 per cent drop to 1,665 units.

However, IMC’s sales for IHFY25 grew by 74 per cent to 12,541 units. Pak Suzuki saw strong sales in December, up 25 per cent MoM and 58 per cent YoY, contributing to a 40 per cent increase in IHFY25 sales.

Honda Atlas sold 1,110 units in December, a modest drop from the previous month but a 23 per cent increase YoY. In total, Honda’s IHFY25 sales grew by 45 per cent. Hyundai also saw an impressive 14 per cent rise in sales for the first half of FY25, with a strong 158 per cent YoY increase in December.

Sales of two- and three-wheelers rose by 43 per cent YoY but dipped 2 per cent MoM, while tractor sales remained subdued, declining by 26 per cent. Truck and bus sales surged 84 per cent YoY, although they were down 41 per cent MoM.

Read next: PSX opens in green, KSE-100 surges over 900 points

You May Also Like