Latest news with #PAMA
Express Tribune
an hour 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
14 hours ago
- 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.
Business Recorder
02-08-2025
- Automotive
- Business Recorder
Imported, local cars: Govt, PAMA agree on equal safety standards
ISLAMABAD: The government and the Pakistan Automotive Manufacturers Association (PAMA) have agreed upon equal safety standards for imported and local manufactured cars. The development came here on Friday during a meeting between a delegation of PAMA who called on the Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan. During the meeting, the PAMA delegation presented their demands to the ministry and said that a custom duty at 40 percent must be imposed on all the imported vehicles, reduction in depreciation allowance from one percent to 0.5 percent, introduction of testing regime as well as proper dealership network and review of valuation mechanism to discourage import of used vehicles in view of investment already made by renowned companies. They further urged clarity on future auto policy especially review/revision of tariff in line with National Tax Policy (NTP), provision of adequate protection to local manufacturing vis-à-vis imports, implementation plan for WP-29 regulations to be adopted in future, promotion of local manufactured auto parts and government support for export promotion. The industry urged the ministry to further clarify on the upcoming 'Motor Vehicle Industry Development Act 2025,' saying act may cover detailed mechanism for testing, performance, implementation of regulations in coordinated manners. Moreover, the act should cover responsibilities of both the government and the Original Equipment Manufacturers (OEMs) industry and before the passage detailed discussions should be carried out on the matter. The meeting was attended by key representatives from PAMA, Secretary of the Ministry of Industries and Production Saif Anjum, and CEO of the Engineering Development Board (EDB). The agenda of the meeting focused on reviewing and enhancing the quality standards for both imported and locally-manufactured vehicles in Pakistan. Addressing the participants, SAPM Haroon Akhtar Khan emphasised the government's unwavering commitment to public safety, stating, 'The lives of our citizens are precious, and ensuring their safety is the government's top priority.' He underscored that international safety and quality standards will be applied uniformly to all imported and locally manufactured vehicles. 'These standards are not only essential for the protection of human lives but also play a vital role in environmental preservation,' he added. To implement the new standards effectively, it was agreed that the EDB and the automotive manufacturers will work in close coordination and consultation. Meanwhile, earlier in the day, the SAPM, held a meeting with the Ambassador of Uzbekistan, Alisher Tukhtaev, to discuss the forthcoming visit to Uzbekistan and avenues for enhancing bilateral cooperation. During the meeting, both sides deliberated on strengthening ties in light of the Prime Minister's Vision and directives, emphasising enhanced trade, investment, and mutual collaboration. Discussions also covered potential agreements aimed at deepening economic relations between the two countries. Key areas of focus included trade cooperation, B2B engagements, and the establishment of a warehouse in Peshawar to support logistics and commerce. The two dignitaries also explored collaboration in various sectors such as industry, agriculture, transport, mining, and minerals. Khan highlighted the potential for joint ventures in the tractor and mining industries, and stressed the importance of identifying new opportunities to achieve the $2 billion trade target with Uzbekistan. He shared plans for delegations from both countries to hold meetings in sectors including information technology, e-commerce, and banking. The Uzbek ambassador expressed keen interest in Pakistan's textile industry and invited SAPM Haroon Akhtar Khan to visit Uzbekistan's Techno Park. Additionally, the ambassador showed interest in Pakistan's pharmaceutical sector. SAPM Haroon Akhtar Khan noted that Uzbekistan imports $3 billion worth of pharmaceutical products annually, presenting a significant opportunity for Pakistan's pharma industry. He added that both countries would also collaborate in emerging fields such as Artificial Intelligence and e-commerce to drive innovation and economic growth. At the conclusion of the meeting, SAPM Haroon Akhtar Khan presented a traditional souvenir to Ambassador Alisher Tukhtaev as a gesture of goodwill and to commemorate the strengthening ties between Pakistan and Uzbekistan. Copyright Business Recorder, 2025
Yahoo
22-07-2025
- Business
- Yahoo
Quest Diagnostics Raises Outlook, But Warns Of Tariff And Medicare Act Risks
Quest Diagnostics Inc. (NYSE:DGX) delivered a robust second quarter in 2025, exceeding analyst expectations with strong sales and earnings growth, prompting an upward revision to its full-year guidance. However, the diagnostic test provider flagged potential headwinds from ongoing tariffs and the significant financial impact if the Protecting Access to Medicare Act (PAMA) is not deferred, setting the stage for a watchful eye on legislative and trade developments. For the second quarter of 2025, the company reported sales of $2.76 billion, a 15.2% increase year-over-year, exceeding the consensus of $2.73 billion. Adjusted earnings reached $2.62 per share, up 11.5%, also surpassing the consensus of $2.58. Also Read: Could Personalized Medicine Be Your Portfolio's Next Big Winner? Find Out 'Demand for our innovative clinical solutions and expanded business from enterprise accounts complemented growth from acquisitions. We also realized productivity gains as we continued to deploy automation and digital technologies across our operations. Given our performance in the quarter and continued utilization trends, we are raising our full-year 2025 guidance,' said Jim Davis, chairman, CEO, and president. Revenue per requisition decreased by 0.4%, requisition volume increased 16.3% and organic requisition volume improved by 2.1%. Adjusted Operating income increased 17.3% to $466 million, while the margin improved marginally from 16.6% to 16.9%. During the earnings conference call, a Quest Diagnostics executive indicated that the company experienced some negative impact from tariffs in the second quarter and anticipates this will continue through the third and fourth quarters. Furthermore, the executive reportedly stated that if the Protecting Access to Medicare Act (PAMA) is not deferred for another year, the financial impact to Quest Diagnostics would be approximately $100 million. View more earnings on DGX This suggests that Quest Diagnostics is facing a dual challenge: ongoing costs related to current tariffs and a significant potential financial hit if PAMA provisions are not postponed. The company's future financial performance will likely be closely tied to developments on both of these fronts. Outlook: Quest Diagnostics revised 2025 guidance for revenue from $10.70 billion-$10.85 billion to $10.80 billion-$10.92 billion versus the consensus of $10.79 billion. The company expects adjusted earnings of $9.63-$9.83 compared to prior guidance of $9.55-$9.80 and the consensus of $9.70. Reflecting the positive sentiment from the company's strong results and raised outlook, investment firm William Blair provided its assessment, 'Quest continues to showcase itself as a predictable revenue and earnings grower, and we remain confident in the updated 2025 guide and longer-term targets.'
Business Recorder
13-07-2025
- Automotive
- Business Recorder
Finance Act 2025: Pakistan's auto industry grapples with enforcement challenges
ISLAMABAD: The auto industry is confused to deal with the enforcement of the Finance Act 2025 which has restricted ineligible persons from booking or purchasing motor vehicles from July 1, 2025. The Federal Board of Revenue (FBR) Member Inland Revenue (Policy) has received a letter from Pakistan Automotive Manufactures Association (PAMA) seeking clarification on bar on Booking and Purchase of Motor Vehicles under the Finance Act 2025. According to the PAMA, refer to the subject matter regarding the enforcement of the new law under the Finance Act 2025, which restricts ineligible persons from booking or purchasing a motor vehicle. The law further mandates that any motor vehicle booked or purchased by such persons shall not be registered by the relevant authorities. In this regard, we request clarifications to facilitate the smooth transition and effective implementation of the new law: 'Localization transforming Pakistan's automotive industry' a) The process for determining eligibility remains unclear. Since the restriction applies at the booking stage—the initial step towards vehicle purchase—it implies that every prospective buyer must first obtain an eligibility certificate or similar approval from the competent authority before proceeding. b) As the eligibility certificate will be a crucial document, we request that the issuance mechanism be defined promptly to avoid delays in motor vehicles bookings. It is suggested that FBR consider developing an eligibility portal similar the filers portal. c) The definition of an eligible person under the Income Tax Law applies to individuals, companies, and associations of persons. This condition should not apply to purchases made by the Federal Government, Provincial Government, Local Government, Armed Forces and their related departments, Organisations, authorities, etc. As the new law has already come into effect from July 1, 2025, we anticipate delays in operational clarity. In the interim, we urge the government to consider allowing temporary bookings for waiting customers until requisite clarifications are issued. The association referred to section 114C (Restriction on economic transactions by certain persons), Notwithstanding anything contained in any law for the time being in force, —(a) any application, by any ineligible person, for booking, purchase or registration of a motor vehicle of the value exceeding the threshold given in Fifteenth Schedule, shall not be accepted or processed by any manufacturer of a motor vehicle or vehicle registering authority of Excise and Taxation Department, as the case may be, the new section in the Income Tax Ordinance 2001 stated. The FBR's early attention and action to this matter will be highly appreciated, it added. Copyright Business Recorder, 2025
