Car Sales in January 2024 Surge 81% MOM

By Newztodays Team

Pakistan car sales (as reported by PAMA) clocked in at 10,500 units, up 81% MoM in Jan-2024, the highest monthly car sales after 11 months. Including non-PAMA members’ car sales, they clocked in at approximately 11,700 units, up 72% MoM in Jan-2024.

Car sales generally increase in January as people wait for the new year to purchase vehicles with new-year registrations.

Indus Motors (INDU) recorded the highest increase in car sales, up +304% MoM to 2,762 units in Jan-2024, primarily due to the launch of the new Corolla Cross.

In 7MFY24, PAMA car sales were recorded at 49,990 units, down 48% YoY compared to 95,240 units in 7MFY23. Escalating car prices, expensive auto financing, and the low purchasing power of consumers contribute to the decline in sales.

Pakistan tractor sales were up 46% MoM and 12% YoY to 3,814 units in Jan-2024. In 7MFY24, tractor sales clocked in at 27,225 units, up 82% YoY, primarily due to the low base of last year amid floods.

Earlier, the research report revealed that the provisional sales figures show that car sales of the three listed car assemblers are expected to experience a surge to the tune of 8,651 units up 74%MoM during Jan’24, while YoY sales might drop by only 6% reflecting the broader market dynamics.

The spike in January sales can be attributed to the new year buying effect and an increase in the import of CKD units following the easing of import restrictions.

On a cumulative basis, auto sales for 7MFY24 were projected to decline by 51% YoY to 42,386 units.

This downturn can be attributed to subdued demand and elevated prices in the market.

Furthermore, the high-interest rate environment has further dampened sales, with car financing witnessing a notable 26% YoY decline in Dec’23.

Pak Suzuki Sale

Sales for Pak Suzuki (PSMC) were expected to jump 54% YoY and 30% MoM to 4,550 units.

However, in 7MFY24, sales declined by 49% YoY to 26,309 units. Honda Atlas Cars (HCAR) sales are expected to improve by 49% MoM to 1,339 units.

Indus Motors (INDU)

The company was set to report a substantial 3.8x MoM increase in sales, totaling 2,762 units. INDU’s impressive sales surge, driven by the debut of its new hybrid variant, signals a strategic move to capture market share in the SUV segment, currently dominated by unlisted players.

Additionally, the adoption of hybrid technology positions INDU to tap into the expanding electric vehicle (EV) market.

CKD imports in the auto industry

In Dec’23, CKD imports within the auto industry surged by 32% MoM to reach UD$115mn in line with our expectations.

Concurrently, total production experienced a substantial 66% MoM increase, totaling 11,090 units.

This upward trajectory in both CKD imports and total production signifies a promising trend of production growth within the industry. Sales of Car Assemblers Down by 3% in December 2023

Going forward, we believe auto sales will continue the rising trend owing to a stable currency and ease in import restrictions in 2HFY24,” Sherman Research said in a report.

Additionally, a forthcoming reduction in policy rates in 2HCY24 is poised to stimulate consumer finance, bolstering purchasing power and driving sales further.