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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
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.
Business Recorder
13-06-2025
- Automotive
- Business Recorder
Auto sector in Pakistan posts strong growth in 11MFY25; car sales surge 35pc YoY
KARACHI: Pakistan's automobile sector demonstrated robust growth in the first eleven months of the fiscal year 2024-25, as car sales, motorbikes, and three-wheelers all posted significant gains, reflecting improved economic stability, better consumer confidence, and easing inflationary pressures. According to data compiled by the Pakistan Automotive Manufacturers Association (PAMA) total car sales in May 2025 reached 14,762 units, marking a 35 percent year-on-year increase and a 39 percent month-on-month growth over April 2025. The strong month-on-month recovery was largely attributed to a low sales base in April 2025, when road closures in Sindh due to strikes and operational challenges delayed deliveries, suppressing vehicle sales. As these issues eased, demand bounced back sharply in May, boosted further by a comparatively stable macroeconomic environment, lower financing costs, and improved consumer sentiment in anticipation of budget incentives. In terms of company-wise performance, Sazgar Engineering Works (SAZEW) posted the most remarkable increase, recording a 67 percent month-on-month rise and an 18 percent year-on-year growth. The impressive figures were driven by the April launch of a new facelift model of HAVAL, which gained strong market acceptance. SAZEW's total sales for 11MFY25 surged by 111 percent to 9,495 units, compared to 4,503 units in the same period last year. Indus Motor Company (INDU) also delivered a solid performance, with a 2.4 times year-on-year and a 48 percent month-on-month rise in sales to 4,829 units, marking its highest monthly sales in nearly three years. The growth was supported by increased demand for popular models like Corolla, Yaris, and Cross, whose combined sales reached a new 3-year high. Honda Atlas Cars (HCAR) reported a 69 percent year-on-year and a 17 percent month-on-month increase in sales to 2,005 units, while Pak Suzuki Motor Company (PSMC) saw a mixed result. PSMC posted a 38 percent month-on-month increase but remained down 8 percent compared to the same month last year, with May sales of 5,519 units. Hyundai Nishat Motors registered a healthy 58 percent year-on-year and 45 percent month-on-month rise to 1,307 units in May 2025. The two- and three-wheeler segment continued its impressive run, with total sales increasing by 26 percent year-on-year and 11 percent month-on-month to 150,175 units in May 2025; the highest monthly sales in three years. This brought cumulative 11MFY25 sales to 1.378 million units, up 30 percent year-on-year, as affordability and essential transport needs sustained demand in this segment. Pakistan's tractor industry, however, showed mixed trends. Total tractor sales in May 2025 stood at 2,184 units, representing a 29 percent year-on-year decline but a 36 percent month-on-month increase, as weak farm economics weighed on new purchase decisions. Within this segment, Millat Tractors sold 1,569 units in May 2025, down 34 percent compared to the previous year, while Al-Ghazi Tractors Limited (AGTL) sold 615 units, showing a 17 percent year-on-year decrease. Meanwhile, Pakistan's truck and bus segment recorded significant growth, with May 2025 sales rising by 147 percent year-on-year and 17 percent month-on-month to 610 units. Hino, Master, JAC, and Isuzu vehicles all posted increases, taking total 11MFY25 sales to 4,495 units, a 92 percent rise from 2,345 units in the corresponding period of the last fiscal year. Market analysts attributed this broad-based recovery in the auto sector to easing inflation, lower interest rates, and better financing options, coupled with a stable macroeconomic backdrop. The positive momentum was particularly noticeable in passenger cars and two- and three-wheeler categories, where pent-up demand from previous months converted into actual sales as operational disruptions eased. Looking ahead, Topline Securities expects the momentum to continue into the next fiscal year, driven by a combination of lower interest rates, improving vehicle financing options, and the introduction of new models equipped with updated engines, including hybrid and plug-in hybrid vehicles. Market watchers believe that as macroeconomic stability improves and consumer affordability rises, automobile sales volumes are likely to sustain their growth trajectory in FY26 as well. However, auto expert Mashood Khan has warned that the government's proposed downward trend in Additional Custom Duty, Regulatory Duty, and Custom Duty for easing the import of used vehicles will likely hit local manufacturing instead of increasing exports in the future. He foresees severe consequences for the local manufacturing industry. Without a thriving domestic industry, import bills will surge, and foreign reserves will take a hit, he added. The auto parts and other manufacturing sectors will face significant challenges. It's unclear how exports will increase without a robust local industry, he added. Copyright Business Recorder, 2025
Business Recorder
13-06-2025
- Automotive
- Business Recorder
Auto sector posts strong growth in 11MFY25; car sales surge 35pc YoY
KARACHI: Pakistan's automobile sector demonstrated robust growth in the first eleven months of the fiscal year 2024-25, as car sales, motorbikes, and three-wheelers all posted significant gains, reflecting improved economic stability, better consumer confidence, and easing inflationary pressures. According to data compiled by the Pakistan Automotive Manufacturers Association (PAMA) total car sales in May 2025 reached 14,762 units, marking a 35 percent year-on-year increase and a 39 percent month-on-month growth over April 2025. The strong month-on-month recovery was largely attributed to a low sales base in April 2025, when road closures in Sindh due to strikes and operational challenges delayed deliveries, suppressing vehicle sales. As these issues eased, demand bounced back sharply in May, boosted further by a comparatively stable macroeconomic environment, lower financing costs, and improved consumer sentiment in anticipation of budget incentives. In terms of company-wise performance, Sazgar Engineering Works (SAZEW) posted the most remarkable increase, recording a 67 percent month-on-month rise and an 18 percent year-on-year growth. The impressive figures were driven by the April launch of a new facelift model of HAVAL, which gained strong market acceptance. SAZEW's total sales for 11MFY25 surged by 111 percent to 9,495 units, compared to 4,503 units in the same period last year. Indus Motor Company (INDU) also delivered a solid performance, with a 2.4 times year-on-year and a 48 percent month-on-month rise in sales to 4,829 units, marking its highest monthly sales in nearly three years. The growth was supported by increased demand for popular models like Corolla, Yaris, and Cross, whose combined sales reached a new 3-year high. Honda Atlas Cars (HCAR) reported a 69 percent year-on-year and a 17 percent month-on-month increase in sales to 2,005 units, while Pak Suzuki Motor Company (PSMC) saw a mixed result. PSMC posted a 38 percent month-on-month increase but remained down 8 percent compared to the same month last year, with May sales of 5,519 units. Hyundai Nishat Motors registered a healthy 58 percent year-on-year and 45 percent month-on-month rise to 1,307 units in May 2025. The two- and three-wheeler segment continued its impressive run, with total sales increasing by 26 percent year-on-year and 11 percent month-on-month to 150,175 units in May 2025; the highest monthly sales in three years. This brought cumulative 11MFY25 sales to 1.378 million units, up 30 percent year-on-year, as affordability and essential transport needs sustained demand in this segment. Pakistan's tractor industry, however, showed mixed trends. Total tractor sales in May 2025 stood at 2,184 units, representing a 29 percent year-on-year decline but a 36 percent month-on-month increase, as weak farm economics weighed on new purchase decisions. Within this segment, Millat Tractors sold 1,569 units in May 2025, down 34 percent compared to the previous year, while Al-Ghazi Tractors Limited (AGTL) sold 615 units, showing a 17 percent year-on-year decrease. Meanwhile, Pakistan's truck and bus segment recorded significant growth, with May 2025 sales rising by 147 percent year-on-year and 17 percent month-on-month to 610 units. Hino, Master, JAC, and Isuzu vehicles all posted increases, taking total 11MFY25 sales to 4,495 units, a 92 percent rise from 2,345 units in the corresponding period of the last fiscal year. Market analysts attributed this broad-based recovery in the auto sector to easing inflation, lower interest rates, and better financing options, coupled with a stable macroeconomic backdrop. The positive momentum was particularly noticeable in passenger cars and two- and three-wheeler categories, where pent-up demand from previous months converted into actual sales as operational disruptions eased. Looking ahead, Topline Securities expects the momentum to continue into the next fiscal year, driven by a combination of lower interest rates, improving vehicle financing options, and the introduction of new models equipped with updated engines, including hybrid and plug-in hybrid vehicles. Market watchers believe that as macroeconomic stability improves and consumer affordability rises, automobile sales volumes are likely to sustain their growth trajectory in FY26 as well. However, auto expert Mashood Khan has warned that the government's proposed downward trend in Additional Custom Duty, Regulatory Duty, and Custom Duty for easing the import of used vehicles will likely hit local manufacturing instead of increasing exports in the future. He foresees severe consequences for the local manufacturing industry. Without a thriving domestic industry, import bills will surge, and foreign reserves will take a hit, he added. The auto parts and other manufacturing sectors will face significant challenges. It's unclear how exports will increase without a robust local industry, he added. Copyright Business Recorder, 2025
Express Tribune
12-06-2025
- Automotive
- Express Tribune
Passenger car sales jump 32% in 11 months
Listen to article Passenger car sales increased by 32.1% to 94,388 units during the first 11 months of the current fiscal year compared to the same period in the previous year on account of a variety of reasons, including a dramatic fall in interest rates, back-to-back Eid festivities, anticipated price hikes ahead of the federal budget 2025-26, and others. According to data released by the Pakistan Automotive Manufacturers Association (PAMA), sales of all vehicles, including two-, three-, and four-wheelers, increased; however, sales of farm tractors declined. Sales of jeeps-cum-pickups rose by 66% to 31,706 units. Sales of trucks and buses increased by 95.7% to 3,776 units and by 73.3% to 719 units, respectively. Sales of motorcycles and rickshaws also surged by 30% to 1,378,131 units. However, sales of farm tractors fell by a dramatic 36.8% to 26,401 units. Automobile consultant and expert Shafiq Ahmed Shaikh said it augurs well that, excluding the tractor segment, other parts of the auto sector are gaining momentum as they are on an upward trend. This reflects that the auto industry is growing and regaining strength. "In my opinion, there are four main reasons. First, the reduction in interest rates — different banks and financial institutions are offering good and affordable instalment schemes. Secondly, owing to information and rumours ahead of the federal budget that vehicle prices will rise, sales have increased. Thirdly, during both Eidul Fitr and Eidul Azha, sales witnessed substantial rises as customers wanted vehicles during the Eid holidays to celebrate in a better way. Finally, credit for the significant rise in vehicle sales also goes to improved law and order, which has supported the industry, along with favourable government measures allowing the industry to flourish. In my opinion, the auto industry has the potential and capacity to grow. We foresee that the existing industry will face stronger competition from electric vehicles (EVs), as the future will mainly depend on EVs," he said. Auto sector analyst Mashood Khan said all segments of the automotive industry performed well except for the tractor segment. The motorcycle industry has continuously gained strong momentum throughout the year due to the middle class, which cannot afford expensive four-wheelers. When it comes to the auto industry overall, it has started regaining strength. Meanwhile, raising concerns about the recently announced federal budget 2025-26, MG Motors Pakistan General Manager (GM) Marketing Division Syed Asif Ahmed said the industry is seeking clarity on the budget. Hybrid Electric Vehicles (HEVs) enjoy 8.5% GST compared to 18% on EVs. This anomaly has existed for many years, giving HEVs an advantage over EVs. "Social media has reported an increase in the GST for HEVs from 8.5% to 18%. If true, this will jeopardise the huge investments made by almost all automakers in HEVs. The Finance Bill is silent on the subject, despite the Automotive Industry Development and Export Plan (AIDEP) 2021-26 commitment of no change in tariffs until June 2026. What is needed is for EV GST to be reduced to 8.5% to match HEVs," he said. He added that used car importers are abusing the gift, baggage, and transfer of residence schemes for commercial trading. Allowing commercial imports of five-year-old used cars with reduced Regulatory Duty (RD) will distort the playing field against local assemblers.
