Pakistan's auto Sales in February 2024 Dip MoM

By Newztodays Team

Pakistan’s car sales, as reported by PAMA, totaled 9,700 units in Feb-2024, marking an 8% MoM decline but a substantial 57% YoY increase.

Including non-PAMA members’ car sales, the figure reached approximately 10,900, reflecting a 7% MoM decrease but a notable 52% YoY rise in Feb-2024.

Indus Motors (INDU) experienced a 26% MoM decrease in car sales, amounting to 2,036 units in Feb-2024.

This decline can be attributed primarily to the high base of the previous month, attributable to the launch of the new Corolla Cross.

In 8MFY24, PAMA car sales totaled 59,699 units, indicating a significant 41% YoY decrease compared to the 101,426 units sold in 8MFY23.

Higher prices, expensive auto financing, and low consumer purchasing power have been key contributors to the decline in this sale.

Pakistan’s tractor sales saw a 12% MoM decline but a 1% YoY increase, reaching 3,366 units in Feb-2024. In 8MFY24, tractor sales amounted to 30,591 units, showing a substantial 68% YoY increase primarily due to the low base of the previous year amid floods.

Earlier, according to provisional figures, auto sales were estimated to remain flat in February 2024.

These figures had shown that auto sales of three listed car assemblers were expected to be flat, standing at 8,460 units, down 2% MoM during Feb’24, while YoY sales depict a surge of 92%.

The decline in sales during Feb’24 may be attributed to a reduced number of working days in the month. INDU Forecasts Sales Up to 30,000 Units in FY24

Additionally, the annual increase in sales is fueled by the removal of import restrictions, which has alleviated inventory shortages and enabled uninterrupted production.

On a cumulative basis, auto sales of 8MFY24 will drop by 44% YoY to 51,191 units. This decrease can be attributed to weakened demand and increased market prices.

Furthermore, the prevailing high-interest rate environment has exacerbated the situation, resulting in reduced car financing further dampening sales.

Company-wise sales of Pak Suzuki (PSMC) are expected to jump 4x YoY and 8% MoM to 4,900 units. However, in 8MFY24, sales decline by 40% YoY to 31,432 units.

PSMC’s sales are expected to be supported by Alto registering 3,373 units, up by 13% MoM. Additionally, Swift’s sales are poised to witness a surge, reaching 633 units, up 20% MoM in Feb’24.

Honda Atlas Cars (HCAR) sales are expected to improve by 14% MoM to 1,520 units, potentially marking a one-year high for February.

However, sales in 8MFY24 are expected to decline by 50% YoY, recorded at 7,741. HCAR’s sales are to receive a boost from an increase in sales of Civic and City models, recorded at 1,375 units, up by 14% MoM and 11% YoY in Feb’24.

Meanwhile, Indus Motors (INDU) reported a decline in sales by 26% MoM, totaling 2,040 units. On the flip side, sales increased by 13% YoY. The decrease in monthly sales could be attributed to a decline in Corolla and Yaris sales, clocking in at 1,154 units, down 46% MoM in Feb’24.

Interestingly, in Jan’23 CKD imports within the auto industry lowered by 59% MoM, clocking in at UD$47mn, suggesting a stagnant trend in auto sales in the upcoming months.

However, a projected reduction in policy rates in the second half of CY24 is expected to stimulate consumer finance, enhancing purchasing power and potentially driving sales growth.