Passenger car sales rise 44.6%
Passenger car sales went up by 44.6% to 67,135 units during the first eight months of the current fiscal year compared to the same period in the previous year due to a significant improvement in buyer sentiment and businesses after the COVID-19 pandemic, new models following the new year, corporate buying, higher prices of used cars, and lower durability of older vehicles, among other factors.
According to data released by the Pakistan Automotive Manufacturers Association (PAMA), sales of all vehicles, including two-, three-, and four-wheelers, increased. However, there was a setback in farm tractor sales. Tractors still failed to achieve any major breakthrough or momentum due to significant crop losses faced by small, large, and progressive growers in the country.
Sales of jeeps and pickups increased by 69% to 22,503 units. Meanwhile, sales of trucks and buses surged by 96.7% to 2,470 units and by 45% to 435 units, respectively. Additionally, sales of two- and three-wheelers (motorcycles and rickshaws) also skyrocketed by 30% to 962,315 units.
However, sales of farm tractors fell by 30% to 21,692 units as growers remain distraught over not receiving fair prices for their crops. The country's overall crop yields continue to decline due to a lack of research and development (R&D) in new seed varieties and unfavourable weather conditions. Most growers are unwilling to cultivate crops due to financial losses and low rates for their agricultural produce.
Speaking to The Express Tribune on Tuesday, auto sector analyst and expert Muhammad Sabir Shaikh said there are various reasons behind the rise in car sales, including the introduction of new models by almost all car brands, the new year and corporate sector buying, and a low interest rate of 12%.
He also noted that the prices of used cars are currently very high, while concerns about their durability persist. As a result, people prefer new vehicles over used ones. A substantial improvement in buying sentiment has been observed after the COVID-19 pandemic. However, the rupee has not yet strengthened against the US dollar.
According to Topline Research official Myesha Sohail, auto sales have increased this year, and the uptrend is expected to continue as new variants enter the market and auto financing recovers amid lower interest rates.
Auto sector analyst Mashood Khan said, "Except for the tractor industry, the market uptrend is visible in all vehicles until the upcoming June. The federal budget for 2025-2026 will be crucial in setting new directions. Policymakers must introduce attractive policies to promote the localisation of vehicles and manufacturing units, which will help reduce vehicle prices, allowing middle-class people to purchase cars. People who earn between Rs100,000 and Rs200,000 a month are unable to afford cars and instead turn to motorbikes."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
12 minutes ago
- Express Tribune
India, China agree to resume direct flights
India and China agreed on Tuesday to resume direct flights and step up trade and investment flows as the neighbours rebuild ties damaged by a 2020 border clash. The Asian giants are cautiously strengthening ties against the backdrop of US President Donald Trump's unpredictable foreign policy, staging a series of high-level bilateral visits. The latest statements came at the end of Chinese Foreign Minister Wang Yi's two-day visit to New Delhi for the 24th round of talks with Indian National Security (NSA) Advisor Ajit Doval to resolve their decades old border dispute. The border talks covered issues related to pulling back troops both countries have amassed on their Himalayan border, delimitation of borders and boundary affairs, the Indian foreign ministry said, without elaborating. The talks appeared to have made no major breakthrough on those issues and Beijing said both countries agreed to meet again in China in 2026. But it also said the two countries would resume direct flights and boost trade and investment, along with smooth facilitation of visas. Direct flights have been suspended since the COVID-19 pandemic in 2020. No date was given for their resumption. "Stable, predictable, constructive ties between India and China will contribute significantly to regional as well as global peace and prosperity," Prime Minister Narendra Modi posted on X after meeting Wang. Modi is scheduled to travel to China at the end of this month to take part in the summit of the Shanghai Cooperation Organisation — his first visit to the country in more than seven years. Tibet dam A readout from the Chinese foreign ministry said Wang told Doval that "the stable and healthy development of China-India relations is in the fundamental interests of the two countries' people". The two sides "should enhance mutual trust through dialogues and expand cooperation," Wang said, and should aim for consensus in areas such as border control and demarcation negotiations. India said Foreign Minister Subrahmanyam Jaishankar had underlined in his talks with Wang India's concerns with regard to the mega dam China is building on the Yarlung Zangbo river in Tibet. Yarlung Zangbo becomes the Brahmaputra as it flows into India and Bangladesh, a lifeline for millions. The dam would have implications for lower riparian states and the need for "utmost transparency" was strongly underlined, New Delhi said. Chinese officials say hydropower projects in Tibet will not have a major impact on the environment or on downstream water supplies, but India and Bangladesh have nevertheless raised concerns. Earlier on Tuesday, an Indian source said Wang had assured Jaishankar that Beijing was addressing three key Indian concerns — the need for fertilisers, rare earths and tunnel boring machines. The Indian foreign and mines ministries and China's commerce ministry did not immediately respond to requests for comment.
Business Recorder
5 hours ago
- Business Recorder
India, China agree to resume direct flights, boost business links
NEW DELHI: India and China agreed on Tuesday to resume direct flights and step up trade and investment flows as the neighbours rebuild ties damaged by a 2020 border clash. The Asian giants are cautiously strengthening ties against the backdrop of US President Donald Trump's unpredictable foreign policy, staging a series of high-level bilateral visits. The latest statements came at the end of Chinese Foreign Minister Wang Yi's two-day visit to New Delhi for the 24th round of talks with Indian National Security (NSA) Advisor Ajit Doval to resolve their decades old border dispute. The border talks covered issues related to pulling back troops both countries have amassed on their Himalayan border, delimitation of borders and boundary affairs, the Indian foreign ministry said, without elaborating. The talks appeared to have made no major breakthrough on those issues and Beijing said both countries agreed to meet again in China in 2026. But it also said the two countries would resume direct flights and boost trade and investment, along with smooth facilitation of visas. Direct flights have been suspended since the COVID-19 pandemic in 2020. No date was given for their resumption. 'Stable, predictable, constructive ties between India and China will contribute significantly to regional as well as global peace and prosperity,' Prime Minister Narendra Modi posted on X after meeting Wang. Modi is scheduled to travel to China at the end of this month to take part in the summit of the Shanghai Cooperation Organisation - his first visit to the country in more than seven years. TIBET DAM A readout from the Chinese foreign ministry said Wang told Doval that 'the stable and healthy development of China-India relations is in the fundamental interests of the two countries' people'.
Express Tribune
8 hours ago
- Express Tribune
End of Consumer Courts puts fair trade at risk
At high tax rates, profit margins for sellers decrease, leaving them with options to pass on the burden to consumers, compromise on the quality of products, evade taxes or find cheaper illicit goods. photo: file As the government announces the closure of 17 consumer courts, cases of more than 15,000 consumers will be transferred to the sessions judge's courts, where millions of cases are already pending for years. The Consumer Protection Act has been in place since 2005, under which 1,500 to 2,000 consumers from Punjab used to approach the consumer courts every month, seeking justice for defective products, unfair contracts or poor service. These courts were functioning across 17 different districts including Lahore, Sahiwal, Multan, Dera Ghazi Khan, Rawalpindi, Sialkot. Gujrat, Gujranwala, Bahawalpur. Sargodha, Faisalabad. Bhakkar, Bahawalnagar, Layyah, Mianwali, Rahim Yar Khan and Mandi Bahauddin. Faisal Khan, Amjad Ali and Mashaq Lodhi, revealed that they had filed cases in the consumer court for a faulty fridge, AC and computer, however, the company was not ready to pay damages. 'Now, after the abolishment of consumer courts, we will be stuck waiting for years,' said the three plaintiffs. Similarly, Tariq Rashid, another plaintiff, shared that he had filed a case against an LED supplier in the consumer court. 'The case has been going on for years, but the company does not show up. Now, we have come to know that the court has been abolished and the cases will go to the sessions court next month,' lamented Rashid. Sympathizing with the consumers, Khizar Iqbal, an advocate representing consumer's cases, pointed out the fact that district courts were already overburdened with cases. 'The number of pending cases across the province amounts to lakhs. In such a situation, if a law transfers the work of consumer courts to local courts, consumers will be deprived of timely justice,' emphasized Iqbal. According to Former Vice President Lahore High Court Bar Association Rabia Bajwa, consumer courts were serving the purpose of ensuring fair trade to buyers across Punjab, who were given a chance to voice their complaints. 'Instead of transferring consumer cases to the overburdened lower courts, the consumer courts should have been improved. Unfortunately, however, the system is not interested in protecting the fundamental socio-economic rights of the people. Little relief and some degree of justice was being given to people through consumer courts but now this too will not happen,' said Bajwa. Records obtained by The Express Tribune have revealed that during the past 18 years since the Consumer Act 2007 was passed, more than 90,000 cases have been filed in the consumer courts of the province, out of which more than 72,000 have been resolved. Furthermore, the Directorate of Consumer Protection Council Punjab reported that a total of 17,970 cases were filed in the existing consumer courts in the last three years alone, on which more than Rs1 billion was spent. Rao Muhammad Afzal, Assistant Director Consumer Protection Council Punjab, revealed that the amount spent on one case, Rs117,167, was becoming a huge burden on the treasury. 'Nearly Rs152 million has been spent resolving more than 1,514 cases from 2022-23. 'The transfer of cases from consumer courts to local courts will reduce government expenditure,' said Afzal. Conversely, Amina Malik, Head of an NGO advocating for consumer rights, opposed Afzal's views. 'Additional expenditures should not be a concern since it is the responsibility of the government to spend money on issues involving public welfare. The only problem with these courts was that despite being established for 20 years, the common people were not aware of their existence,' noted Malik.
