Pakistan's locally produced automobile sales surge 5% in February

Pakistan's locally produced automobile sales experienced a 5% surge in February, reaching 14,091 units compared to the same period last year. The increase was driven by a 24% rise in passenger cars and light commercial vehicles sales, totaling 12,071 units, according to data received from Pakistan Automotive Assemblers Association on Tuesday

Over the first eight months of the fiscal year, total automobile sales reached 114,236 units, a 24% increase from 92,056 units during the same period last year. Passenger cars and LCV sales saw a substantial 50% increase, totaling 89,639 units in the eight-month period.

An analyst at JS Global Capital attributed this growth to stable car prices due to currency stability, higher duties on imported vehicles to protect the local industry, and attractive financing rates from banks, along with promotional offers from company dealerships.

"Looking ahead, we anticipate currency stability, continued improvement in macroeconomic indicators, and declining auto-financing rates to be the key triggers for the industry," the analyst said.

Company-Specific Sales Figures

In February 2025, Pak Suzuki Motor Company (PSMC) sold 5,330 units, marking a 9% increase from 4,885 units sold in February 2024. Cumulatively, PSMC's sales for the first eight months of the fiscal year reached 45,408 units, a 44% rise from 31,432 units in the same period of the previous fiscal year.

Indus Motor Company (INDU) reported a 28% increase in February, with 2,611 units sold compared to 2,038 units in February 2024. Their cumulative sales for the first eight months stood at 18,487 units, up 54% from 11,998 units in the same period last year.

Honda Atlas Cars (HCAR) saw a 35% increase in February 2025, reaching 2,054 units from 1,517 units in February 2024. Cumulative sales rose 47% to 11,348 units in the first eight months.

Dewan Farooq Motors (DFML), which reported no sales in February 2024, recorded 33 units sold in February 2025, contributing to a total of 309 units for the eight-month period.

Sazgar Engineering (SAZEW) experienced remarkable growth, with February sales up 113% to 883 units compared to 414 units in February 2024. Cumulative sales soared 166% to 7,085 units in the first eight months.

Hyundai also saw a significant increase, with February 2025 sales up 35%, totaling 1,052 units from 780 units in February 2024. Their cumulative sales for the first eight months reached 6,338 units, a 19% rise from 5,342 units in the same period last year.

Tractor Sales Decline

Millat Tractors (MTL) and Al-Ghazi Tractors (AGTL) experienced declines in February 2025 sales. MTL sold 1,124 units, a 48% drop from 2,158 units in February 2024, with cumulative sales decreasing by 33% to 13,581 units in the first eight months.

AGTL's February 2025 sales plummeted by 66% year-on-year, with only 410 units sold compared to 1,208 units in February 2024. Their cumulative sales fell by 23% to 8,111 units in the same period.

Overall, Pakistan's automobile industry witnessed substantial growth in certain sectors, while tractor sales faced significant declines. The industry's future performance is expected to be influenced by factors such as currency stability, macroeconomic improvements, and favorable financing conditions.