Car sales up 69% in Pakistan in December

Car sales in Pakistan surged 69% to 9,820 units in December compared with the same month last year, according to data from the Pakistan Automobiles Manufacturers Association (PAMA) released on Tuesday.

However, sales dipped 3% from previous month primarily due to the year-end effect as buyers delayed deliveries or purchases to secure new year registrations.

The increase in car sales was fueled by lower interest rates, improved consumer confidence, and the introduction of new variants and models.

PAMA reported that sales during the first half of fiscal year 2024-25 (FY25) reached 60,676 units, up 54% from 39,453 units in the same period of FY24.

Total car sales for 2024 hit 125,050 units, a 52% increase from 82,215 units in 2023.

Data from Sazgar Engineering Works (SAZEW) has not been released yet, so December figures exclude SAZEW's sales.

Among non-PAMA members, KIA Lucky Motors experienced a 30-40% rise in sales in 2024 compared to 2023, with expected volumes between 6,500 and 7,000 units. Including KIA sales, industry car sales in 2024 rose 51%, Muhammad Sohail, CEO of Topline Securities, said.

Company-wise, Indus Motor Company (INDU) was the only firm to report a sequential decline of 25% in December, while other companies saw increases in sales.

In the motorcycle segment, two and three-wheeler sales increased 43% totaling 118,091 units in December.

Truck and bus sales rose 84% reaching 193 units in December.

The auto sales market has seen a recovery in recent months, and analysts expect strong growth from January, driven by the anticipated recovery in auto finance amidst declining interest rates.