Pakistan's auto sales surge 61% in January

Pakistan’s locally assembled automobile sales, including cars, LCVs, vans, jeeps, and EVs, saw a significant increase of 61% in January, reaching 17,000 units compared to the same month last year primarily driven by the seasonal uptick as consumers opt for new-year models.

Over the first seven months of the current fiscal year, auto sales totaled 78,200 units, marking a 56% rise from the same period last year. This surge is attributed to improved consumer confidence and increased demand for vehicles across various segments.

Pak Suzuki Motor Company (PSMC) led the charge with a 32% rise in sales, selling 7,794 units in January 2025, compared to 5,903 units in December 2024.

The Alto model was a standout, with sales soaring to 5,039 units, a 69% increase from the same month last year. The Ravi model also showed impressive growth, with 840 units sold, reflecting a 193% increase.

Indus Motor Company (INDU) reported a 102% growth, selling 3,335 units in January 2025 compared to the previous month. The Corolla and Yaris models were particularly popular, with sales reaching 2,149 units, an 86% rise from December 2024.

The Fortuner and Hilux models also saw significant growth, with sales increasing by 138% in January over December.

Honda Cars (HCAR) reported a 99% increase in sales, with 2,210 units sold in January 2025 compared to the previous month. The City and Civic models were the main contributors, with 1,985 units sold, a 105% increase from December 2024.

Hyundai Nishat experienced a 14% sequential growth, selling 1,044 units. The Tucson model led the way with 384 units sold, a 20% increase from the previous month.

Sazgar Engineering reported a remarkable 199% monthly growth, with 1,495 units sold in January 2025. The Haval model was the primary driver of this growth.

However, the tractors segment faced challenges, with Al-Ghazi Tractors (AGTL) and Millat Tractors (MTL) reporting significant declines in sales. AGTL saw an 82% monthly decrease, while MTL reported a 50% drop.

Going forward, analysts expect stable car prices, a decline in auto financing rates, and a potential increase in SBP's auto financing limit to stimulate sector demand.