Car Sales touched 18 months high in Jun-2024

ISLAMABAD:Pakistan car sales (as reported by PAMA) touched 18 months high, recording sales of 13.3k units in Jun-2024, up 21% MoM and 120% YoY.

In volumetric terms, MoM jump in car sales is primarily due to an increase in the sales of Indus Motors (INDU) up 44% MoM to 2,957 units and Pak Suzuki (PSMC) up 15% MoM to 6,885 units in Jun-2024.PAMA Calls For Imposing 15% RD on Import of Used Cars

Hyundai Nishat Motor recorded sales of 1,059 units (up 55% MoM) and Sazgar Engineering (SAZEW) recorded sales of 871 units (up 12% MoM). However only Honda Atlas Cars (HCAR) recorded sales of 1,095 units which is down 8% MoM in Jun-2024.

On a YoY basis, the significant jump of 120% in total car sales is attributed to a low base from last year amid plant shutdowns.

This takes FY24 PAMA reported car sales to 103,827 units down 18% YoY and lowest car sales after 15 years. The decline is primarily due to escalating car prices, expensive auto financing, and the low purchasing power of consumers.

Going forward, we believe that improvement in economic activity following the IMF’s new program, a stable currency, and reduction in interest rates will lead to an improvement in car sales.

Pakistan bike sales were down 24% MoM and up 8% YoY to 89,895 units in Jun-2024. Atlas Honda (ATLH) recorded sales of 80K units, down 22% MoM and up 7% YoY. This takes total industry sales to 1.15mn units down 3% in FY24 due to low purchasing power of consumers.

Among tractors, Millat Tractors (MTL), recorded sales of 2,718 units up 27% YoY and 16% MoM, while Al Ghazi Tractors (AGTL) which recorded sales of 1,416 units up 66% YoY and 94% MoM in Jun-2024. This takes total tractor industry sales to 4,134 units in June 2024 28% YoY and 34% MoM. In full year FY24 sales clocked in at 45,494 units up 47% YoY due to low base of last year amid floods.

Trucks & Buses sales were also up 21% MoM and 101% YoY to 299 units in Jun-2024. This takes FY24 industry sales to 2,664 units, down 31% YoY.