Sales of cars in Pakistan soared by 69% in December 2024 to 9,820 units against the 5,816 units sold in the corresponding period last year, reflecting growing customer demand.
Data issued by the Pakistan Automotive Manufacturers Association (PAMA), however, noted that on a monthly basis, the sales had declined by 3 percent from November 2024. The month-on-month decline has been attributed to the end-of-year effect, with buyers postponing deliveries or purchases to obtain new year registrations.
Myseha Sohail, research analyst at Topline Securities, said the jump in car sales during December was driven by lowered interest rates, improved consumer confidence, and the introduction of newer variants and models.
Sales of 1300cc and above cars were recorded at 2,977 units, up 67 percent against the December 2023 sales of 1,785 units. For 1,000cc cars, PAMA recorded sales of 542 units, down against 706 units during the same month last year. For cars under 1,000cc, total sales were recorded at 4,345 units, up 79 percent against 2,425 units in December 2023.
Overall, in the first half of fiscal year 2024-25, PAMA said it recorded sales of 60,676 units, 54% up from the 39,453 units sold in the same period last year. For all of 2024, car sales totaled 125,050 against the 82,215 sold in 2023, a 52% jump.
In the motorcycle segment, sales of two- and three-wheelers increased by 43% year-on-year, totaling 118,091 units in December 2024. However, this was down 2% month-on-month.
Total sales of tractors hit 7,030 units, a 170% year-on-year and 105% month-on-month increase. This surge was primarily driven by the delivery of tractors under the Green Tractor Scheme of the Punjab government.
Truck and bus sales climbed 84% year-on-year, but were down 41% month-on-month, at 193 units sold in December 2024.
Company-wise
Indus Motor Company was the only company to experience a month-on-month decline of 25% in December 2024, while all other companies saw increases in sales.
Millat Tractors achieved 4,686 units in sales, its highest monthly sales in nearly 7 years (since April 2018), reflecting a 123% year-on-year and 231% month-on-month rise in December 2024. Al Ghazi Tractors recorded 2,344 units in sales, up 363% year-on-year and 17% month-on-month in December 2024.
In the electric vehicle category, Dewan Motors’ Honri-Ve recorded sales of 41 units in December 2024, compared with 63 units the prior month. PAMA noted data from Sazgar Engineering Works was pending and the December figures did not include its sales.
Among non-PAMA members, KIA Lucky Motors saw a 30-40 percent rise in sales in 2024 compared to 2023, with volumes expected at 6,500-7,000 units.
Automobile sales have been gradually recovering over the past six months as the economy stabilizes. Experts predict the sales momentum to persist in the coming months as automobile financing picks up once more with a decline in interest rates.