Pakistan witnesses 1.94% MoM increase in car sales

WEB DESK: The latest data from the Pakistan Automotive Manufacturers Association (PAMA) reveals a positive trend in the country’s auto sector, as passenger car sales increased by 1.94 per cent month on month (MoM) in February 2024.

The figures rose to 7,953 units, compared to 7,802 units recorded in January 2024.

This uptick follows a surge in car sales observed in the previous month, marking the highest numbers since December 2022.

The momentum is attributed to the new year boost in auto sales, which has continued into February.

On a year-on-year basis, the sales of cars have seen a significant spike, reaching 2.18 times the numbers recorded in February 2023, totaling 3,642 cars.

However, in the cumulative period of 8MFY24, sales stand at 46,417 units, showing a 40.93 per cent decrease compared to the same period in 8MFY23.

The production side of the auto industry also experienced a shift, with a YoY decrease of 40.84 per cent in the total production of passenger cars during 8MFY24.

The figures stand at 48,402 units, compared to 81,809 units in 8MFY23. In February alone, production reached 8,002 units, reflecting a 16.77 per cent MoM decline from January 2023.

However, on a year-on-year basis, production increased by an impressive 69.97 per cent, compared to 4,708 units in February 2023.

The auto industry in Pakistan faced challenges such as high inflation, currency depreciation, low demand, and political uncertainty.

These issues, combined with supply chain disruptions in securing critical parts and materials, impacted the sector adversely.

However, with the recent decision by the State Bank of Pakistan (SBP) to ease import restrictions, the auto sector has regained its strong position.

Data from PAMA reveals that the ‘1300cc and Above’ category dominated sales, reaching 3,941 units in February.

Toyota (Corolla, Yaris & Corolla Cross) led this category with 1,759 units sold, followed by Honda Cars (Civic & City) at 1,375 units.

The ‘Below 1000cc’ category also saw substantial sales, totaling 3,556 units in the review month. Suzuki Alto was a frontrunner in this category with sales of 3,373 units, while Suzuki Bolan recorded sales of 183 units.

The positive trajectory in both sales and production signals a robust rebound for Pakistan’s auto industry, overcoming the challenges it faced in recent months.

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