In the latest update on Pakistan’s automotive industry, car sales for the month registered at 6,200 units, reflecting a notable 26% month-on-month (MoM) decline and a substantial 54% year-on-year (YoY) decrease. When considering non-PAMA members, the overall car sales figure reaches approximately 7,000 units, showcasing a 26% MoM dip and a 53% YoY drop. These insights are drawn from data provided by the Pakistan Automotive Manufacturers Association (PAMA).

Topline Securities, in its sector review, attributes the MoM decline in car sales to supply chain disruptions and reduced demand. However, the YoY sales downturn is linked to a combination of factors, including escalating car prices, expensive auto financing, and the constrained purchasing power of consumers.

In the first four months of the fiscal year 2023-24 (4MFY24), PAMA-recorded car sales totaled 27,163 units, indicating a significant 44% YoY decline compared to the 48,573 units sold in the same period last fiscal year.

Specifically, Honda Car (HCAR) and Indus Motors (INDU) experienced notable setbacks, with sales dropping by 66% MoM and 34% MoM, respectively. The shutdown of their plants due to inventory shortages contributed to these declines.

Pak Suzuki (PSMC) reported sales of 3,810 units, marking a 10% MoM decrease in October 2023. Similarly, Hyundai witnessed a 54% MoM decline, with the newly launched Santa FE recording sales of 175 units during the same month.

In the tractor industry, Al-Ghazi Tractors (AGTL) and Millat Tractors (MTL) recorded MoM declines of 5% and 49%, respectively, in October 2023. Despite this, total tractor industry sales for 4MFY24 reached 17,296 units, up 87% YoY due to a low base last year amidst floods.

Bike sales faced a 5% MoM and 11% YoY decline in October 2023. Atlas Honda (ATLH) reported sales of 90,000 units, down 5% both MoM and YoY. The overall industry sales for 4MFY24 amounted to 371,000 units, reflecting a 10% YoY decrease attributed to higher bike prices and the constrained purchasing power of consumers.