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Express Tribune
7 days ago
- Automotive
- Express Tribune
Auto sales plunge 49% post-budget
nalysts are anticipating the automobile sector to keep its pace in the near future owing to improving macroeconomic situation and new production lines introduced by the players. photo: file Listen to article Pakistan's automobile industry experienced a sharp slowdown in July 2025, with sales tumbling 49% month-on-month (MoM) to 11,034 units, according to data from the Pakistan Automotive Manufacturers Association (PAMA). Despite the steep monthly decline, volumes were up 28% year-on-year (YoY) due to a low base in July 2024. Industry experts attribute the MoM slump primarily to the high base of June 2025, when a rush of pre-buying occurred ahead of tax hikes in the FY26 federal budget. The budget introduced an Electric Vehicle (EV) adoption levy and raised the sales tax on 850cc vehicles from 12.5% to 18%, prompting customers to advance purchases before the changes took effect. "The MoM decline is mainly attributed to the high base effect from Jun'25, when sales spiked due to a surge in pre-buying ahead of the increase in vehicle taxes, namely the imposition of the EV adoption levy and the increase in ST on 850cc vehicles from 12.5% to 18% under the FY26 federal budget," wrote AHL Research. The YoY growth is due to a more stable macroeconomic environment with lower interest rates and easing inflation, which has improved consumer sentiment, noted Myesha Sohail of Topline Securities. Breaking down the segments, the 1,300cc and above category saw a 37% MoM decline, with sales dropping to 4,290 units. The 1,000cc segment experienced a 61% MoM decrease, totalling 264 units. Additionally, the below 1,000cc segment recorded a 75% MoM decline, with sales reaching 2,557 units, according to AHL. Among assemblers, Indus Motor Company Ltd (INDU) posted a relatively modest 9% MoM drop to 3,337 units, as gains in Fortuner and Hilux sales (+17% MoM) partly offset declines in Corolla, Yaris, and Corolla Cross (-17% MoM). Pak Suzuki Motor Company Ltd (PSMC) suffered the steepest decline, with volumes shrinking 72% MoM to 3,450 units across all models, led by Alto (-75%) and Wagon R (-84%). Honda Atlas Cars (HCAR) saw sales fall 17% MoM, driven by a 33% slide in Civic/City, though BR-V/HR-V sales surged 3.6 times MoM. In the SUV segment, Sazgar Engineering (SAZEW) recorded a 20% MoM drop to 1,079 units due to weaker Haval demand (-19%). The slowdown was not limited to passenger cars. Two-wheeler sales fell 11% MoM, with Atlas Honda (ATLH) selling 104,276 units (-10%). Three-wheeler volumes plunged 47% MoM, while tractor sales collapsed 57% MoM, with both AGTL (-41%) and MTL (-61%) reporting significant losses. Analysts are anticipating the automobile sector to keep its pace in the near future owing to improving macroeconomic situation and new production lines introduced by the players. "We expect the momentum in auto sales to continue in FY26, supported by lower interest rates and a strong pipeline of new model launches across various engine types, including hybrid and plug-in hybrid," said Sohail.
Business Recorder
12-08-2025
- Automotive
- Business Recorder
Launch of new models: car sales in Pakistan jump 28% in July 2025
Pakistan car sales surged 28% on year-on-year (YoY) basis in July 2025, rising to 11,034 units apparently due to launch of a number of new models in recent months and availability of car financing at affordable interest rate. Car sales had stood at 8,589 units a year ago in July 2024, according to Pakistan Automobile Manufacturers Association (PAMA) data. 'The year-on-year growth is due to a more stable macroeconomic environment with lower interest rates and easing inflation which has improved consumer sentiment,' Topline Research's analyst Myesha Sohail said in a commentary. Sohail added, 'we expect the momentum in auto sales to continue in FY26, supported by lower interest rates and a strong pipeline of new model launches across various engine types, including hybrid and plug-in hybrid.' Car sales in Pakistan jump 43% in fiscal year 2024-25 The July sales, however, declined 49% month-on-month (MoM) basis which is 'mainly attributed to the high base effect from Jun'25, when sales spiked due to a surge in pre-buying ahead of the increase in vehicle taxes, namely the imposition of the electric vehicle (EV) adoption levy and the increase in sales tax (ST) on 850cc vehicles from 12.5% to 18% under the FY26 federal budget,' AHL Research's analyst Menka Kirpalani said in another commentary. Company wise sales Indus Motor Company (INDU) recorded a two-fold year-on-year increase in sales to 3,337 units. The growth was led by a 17% MoM rise in the 'Fortuner and IMVs' segment, while demand for Corolla, Yaris, and Cross also remained robust, according to Topline. Hyundai Nishat's sales grew 2.1-time YoY to 1,225 units. 'The Hyundai Porter was the only model to post MoM growth, rising 31%, while the Tucson and Elantra recorded 5-time and 4-time YoY increases, respectively.' Sazgar Engineering (SAZEW) sales rose 31% on YoY basis in the month under review. 'The increase in sales was supported by clarity from the company that budget had no impact on its flagship car Haval prices. Sales were also supported by the launch of the new HAVAL facelift, with further growth expected from August onwards following the introduction of the H6 PHEV variant,' Topline commentary read. Honda Atlas Cars (HCAR) recorded a 61% YoY increase to 1,500 units in July 2025. Pak Suzuki Motor Company (PSMC), however, posted an 18% YoY decline. Two-three wheelers sales Two and three wheeler sales rose 44% YoY in July 2025, rising to 122,441 units. Electric motorcycles and three-wheelers, newly added to the data, accounted for 542 units of the total. 'Road Prince figures are still awaited and could add 2,000 units to the total.' The total tractor industry recorded sales of 1,195 units, down 18% YoY and 57% MoM. 'Tractor sales fell on year-on-year basis due to weak farm economics, in our view,' Sohail said. Truck and bus sales in July 2025 were up 22% YoY while down 49% MoM, reaching 374 units.
Express Tribune
11-07-2025
- Automotive
- Express Tribune
Auto sector rebounds on demand for small cars
Automobiles can now be registered at the time of purchase. PHOTO: FILE Listen to article Pakistan's automobile industry staged a remarkable recovery in financial year 2024-25, with total passenger car sales reaching 148,023 units, up 43% year-on-year (YoY) from 103,829 units in FY24, marking the first significant rebound after years of suppressed volumes. The recovery was fueled by improved macroeconomic conditions, reduced interest rates and the launch of new models that revived consumer confidence, according to data released by the Pakistan Automotive Manufacturers Association (PAMA). The momentum continued into June 2025 as monthly sales came in at 21,773 units, a 36-month high, reflecting a 47% month-on-month (MoM) and 64% YoY increase. "In June 2025, automobile sales surged to a 36-month high of 21.8k units, registering a robust 47% MoM and 64% YoY growth," noted Menka Kirpalani, auto analyst at Arif Habib Limited. Analysts attribute this sharp surge to a wave of pre-buying ahead of proposed GST hike on vehicles up to 850cc from 12.5% to 18% effective from July 1, 2025. "June's boost was primarily driven by the unprecedented demand for small cars, particularly Alto," noted Myesha Sohail, auto analyst at Topline Securities. Alto sales hit a 39-month high of 9,497 units, leading to a 139% MoM increase in Pak Suzuki Motor Company's (PSMC) overall sales that reached 13,217 units. PSMC was the top performer, recording the highest MoM growth of 2.4 times. Sales of Cultus and Swift also recorded remarkable increases of 108% and 125% MoM, respectively, while Wagon R was the only PSMC model that posted a decline (-32% MoM). Sazgar Engineering Works Ltd (SAZEW) posted the second-highest monthly sales of 1,349 units in June 2025, up 47% MoM and 55% YoY. The launch of the facelifted Haval lineup contributed significantly to this jump. SAZEW's FY25 sales doubled, reaching 10,844 units versus 5,374 units in FY24. In contrast, Indus Motor Company (INDU) saw its June 2025 volumes fall 24% MoM to 3,687 units, with Corolla and Yaris sales dropping to 2,902 units and Fortuner and Hilux sales down to 785 units. However, INDU still managed a 25% YoY increase in FY25. Honda Atlas Cars (HCAR) posted a 10% MoM drop in June, selling 1,808 units. Despite the monthly decline, HCAR saw a 65% YoY increase in FY25 sales. Motorcycle and three-wheeler sales in June totalled 138,509 units, up 54% YoY but down 9% MoM, taking FY25 volumes to 1.5 million units, a 32% YoY increase. Meanwhile, the tractor segment rose 78% MoM in June to 2,791 units, driven largely by a 136% MoM surge in Millat Tractors' sales. However, overall FY25 tractor volumes were down 32% YoY, reflecting weak agricultural economics. Truck and bus sales reached 737 units in June – a 2.5 times YoY and 21% MoM rise. FY25 volumes doubled to 5,232 units compared to 2,644 in FY24, signalling some recovery in commercial demand. In contrast, India, the region's automotive giant, sold around 4.2 million units (FY25), dwarfing Pakistan's market by 28 times despite a slower 6-8% growth, as reported by the Society of Indian Automobile Manufacturers. Looking ahead, analysts at AHL and Topline Securities forecast continued growth in FY26 as interest rates decline further and companies prepare new launches, particularly hybrid and plug-in hybrid vehicles, catering to evolving consumer preferences and fuel economy needs.
Business Recorder
10-07-2025
- Automotive
- Business Recorder
Car sales in Pakistan jump 43% in fiscal year 2024-25
KARACHI: Car sales in Pakistan jumped by 43% in the fiscal year 2024-25, the Pakistan Automotive Manufacturers Association (PAMA) reported on Thursday, an increase that analysts attributed to stable macroeconomic environment, introduction of more variants, lower interest rates, and improving consumer sentiment. In FY25, car sales (including jeeps and pick-ups) stood at 148,023 units, against 103,829 units reported in FY24. In June 2025, car sales clocked in at 21,773 units, reflecting a 64% year-on-year (YoY) and 47% month-on-month (MoM) rise. 'The YoY growth is supported by a more stable macroeconomic environment, introduction of more variants, lower interest rates, easing inflation, and improving consumer sentiment,' said Myesha Sohail from Topline Research in a statement. Auto sector in Pakistan posts strong growth in 11MFY25; car sales surge 35pc YoY According to PAMA data, except for farm tractors, sales of all vehicles including two, three and four-wheelers gained momentum. Sales of jeeps-cum-pickups increased by 61% to 35,820 units. Trucks and buses sales went up by 103.2% to 4,444 units and by 73.6% to 788 units, respectively. Sales of motorcycles and rickshaws also shot up by 32.1% to 1,518,752 units. Meanwhile, sales of farm tractors sharply fell down by 36.4% to 29,192 units as both farmers and progressive farmers face economic issues due to climate change and lower prices of their output. New Year effect: Pakistan car sales soar 73% MoM in January 2025 Talking to Business Recorder, auto sector expert Muhammad Sabir Shaikh said tractor sales fell because growers could not get better prices of their respective last agricultural produce. A dramatic decrease in the interest rate and easy leasing policies of banks pushed up car sales and customers are nipping down to new vehicles while getting rid of old ones, Shaikh added.
Express Tribune
12-03-2025
- Automotive
- Express Tribune
Passenger car sales rise 44.6%
Listen to article 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."
