Sales of cars in Pakistan declined by 5% month-on-month in April, though recorded a nominal 1% rise compared to the same month last year, with analysts attributing the monthly slowdown to prolonged highway closures in Sindh delaying deliveries.
According to a report published by Topline Securities, there were 10,596 total car sales in the country. It said a more stable macroeconomic environment, lower interest rates, easing inflation, and improving consumer sentiment had supported the yearly growth. Additionally, it said, new model launches and variant introductions played an important role in boosting demand.
In the first 10 months of the ongoing fiscal year, sales rose by 40% from 79,596 last year to 111,464 this year.
Company breakdown
Sazgar Engineering saw the highest monthly decline of 42%, selling just 549 units in April. It attributed this to 10 days of strikes causing loss of production. Cumulatively, the company’s sales for the first 10 months of FY25 have climbed 130% year-on-year to 8,576 units, compared to 3,723 units last year, thanks largely to the wide acceptance of the Haval brand in Pakistan.
Pak Suzuki Motor Company, with 4,003 units sold, posted a decline of 12% month-on-month and 33% year-on-year in April.
Honda Atlas Cars saw a month-on-month rise of 20% and a year-on-year rise of 70%, selling 1,707 units.
Indus Motor Company recorded a 58% year-on-year and 4% month-on-month rise, respectively, while Hyundai Nishat saw a 9% year-on-year rise and a 5% month-on-month decline.
Sales of two- and three-wheelers increased by 26% year-on-year and 6% month-on-month, totaling 135,721 units in April. Higher sales in this segment are attributed to improving purchasing power of the public amidst lower inflation, said Topline Securities. Sales of such vehicles in the first 10 months of FY25 have hit 1.2 million, a 30% year-on-year rise.
The tractor industry recorded sales of 1,602 units, a 48% decline year-on-year and 4% month-on-month, likely due to weak farm economics.
Truck and bus sales in April climbed 127% year-on-year and 13% month-on-month, reaching 520 units. Overall sales for the first 10 months of FY25 have reached 3,885 units, 85% higher than the 2,098 units sold in the same period last year.
Topline Securities has noted that auto sales have rebounded strongly in FY25, adding that it expects them to maintain momentum, supported by interest rate cuts, stable rupee and new model launches.