KARACHI, November 12, 2024: The auto sector saw a strong rebound in car and motorcycle sales in October, fueled by improved financing options and growing consumer confidence, though tractor sales continued their downward trend.
Sales of cars, light commercial vehicles (LCVs), pickups, and vans totaled 13,108 units in October, marking a 27% month-on-month (MoM) increase and a remarkable 112% rise year-on-year (YoY).
This growth helped push total sales for the first four months of fiscal year 2025 (4MFY25) to 40,693 units, up 50% compared to the same period last year.
Read More: Task Automation: Google to Unveil Project Jarvis AI Model
Myesha Sohail, an analyst at Topline Securities, attributed the surge to better auto financing and a more stable market environment.
She also expects further growth in sales, driven by continued declines in interest rates and the launch of new models, particularly hybrid and electric vehicles (HEVs and EVs).
Among the leading automakers, Pak Suzuki Motors Company (PSMC) reported the highest increase, with sales jumping 40% MoM and 85% YoY to 7,040 units in October.
For the 4MFY25 period, Pak Suzuki’s total sales reached 20,176 units, a 37% increase from the same period last year.
Indus Motor Company (IMC) saw a 142% YoY surge, selling 2,532 units in October, along with a 7% MoM increase. Sales for IMC in the July-October period were up 56% compared to the same months last fiscal year.
Honda Atlas Cars Ltd (HACL) reported a 230% YoY increase, with 1,514 units sold in October, marking a 19% rise from the previous month.
Also Read More: Automakers Warn of Industry Collapse Due to 25% Local Car Sales Tax
Total sales for the company during 4MFY25 rose 64%, reaching 4,862 units.
Sazgar Engineering Works Ltd (SEWL) posted the most significant growth, with a 296% YoY jump and a 21% MoM increase to 1,002 units in October.
This was SEWL’s highest-ever monthly sales, and for the first four months of FY25, the company’s sales soared 265% to 3,607 units.
Hyundai Nishat Motors (HNM) saw a 34% YoY increase, though its MoM sales fell by 26% to 504 units in October. For the 4MFY25 period, HNM’s sales dropped 10% YoY, totaling 2,301 units.
Motorcycle and Rickshaw Sales Reach Record Highs
Sales of two- and three-wheelers also posted strong gains, rising 35% YoY and 5% MoM to 137,693 units in October, the highest monthly sales in 28 months.
The increase in sales is attributed to reduced inflation and better purchasing power among consumers.
Overall sales for two- and three-wheelers during 4MFY25 reached 457,880 units, up from 370,966 in the same period last year.
Tractor Sales Continue to Struggle
In contrast, the tractor market remains sluggish, with total industry sales of 1,733 units in October, a 67% decline YoY, though up 61% MoM.
Millat Tractors, a major player in the sector, sold 1,439 units, down 52% YoY, but up 94% MoM. Al Ghazi Tractors (AGTL) saw sales drop by 87% YoY and 12% MoM, with 294 units sold in October.
For the 4MFY25 period, total tractor sales, including both Millat and Al Ghazi, fell by 60% to 6,939 units, down from 17,296 units during the same period last year.
However, tractor sales have shown some recovery following the Federal Board of Revenue’s decision to rescind SRO 563(1)/2022, which allows tractors to be sold for non-agricultural uses.
Additionally, the sales tax rate for tractors was increased to 14% from 10%, which is expected to help address the backlog of refund claims.
Truck and Bus Sales Show Modest Growth
Sales of trucks and buses also saw growth, with 1,277 units sold during the first four months of FY25, up from 712 units in the same period last year.