- Total units sold reached 10,297, a 24% YoY increase and an 18% MoM increase.
- The surge was primarily due to the clearance of backlog orders from Suzuki.
- Economic vehicles, particularly those with engine capacities of 800cc and below, continued to perform strongly, with sales totaling 3,761 units.
The surge in sales was primarily attributed to the clearance of backlog orders from Suzuki. Myesha Sohail, an analyst at Topline Research, highlighted that the rise in car sales was driven by these delayed deliveries, stating, "The increase in car sales is driven by the backlog of Suzuki cars, which were delivered this month."
Muhammad Abrar Polani, a research analyst at AHL Auto, also noted the factors contributing to the month-on-month growth. He explained that the MoM increase is mainly due to a recovery in demand for Pakistan Suzuki Motors Company (PSMC), which had faced challenges in early fiscal 2024 due to plant shutdowns. Promotional discounts from Indus Motor Company (INDU) and the availability of easy monthly installment plans have further boosted consumer purchasing power.
Osama Naeem, an investment analyst at AKD Securities, observed that economical vehicles, particularly those with engine capacities of 800cc and below, continued to perform strongly. Sales for these vehicles totaled 3,761 units, marking a significant 35% annual increase.
While falling auto financing rates were expected to enhance industry sales, Naeem expressed caution, noting that interest-free installment plans had not yet led to a substantial increase in sales volumes. He indicated that sales may improve once financing rates fall to single-digit levels and the maximum financing cap of PKR 3 million is lifted by the State Bank of Pakistan (SBP).
In the first quarter of FY25, total car sales reached 27,585 units, reflecting a 31% YoY rise compared to 20,982 units in the same period last year. Sazgar Engineering (SAZEW) reported the most significant YoY increase at 174%, although it saw a 13% decline month-on-month to 827 units in September. PSMC recorded a 37% MoM increase and an 18% YoY rise to 5,013 units.
Additionally, Ravi sales surged by 57% YoY and 58x MoM, while Alto sales increased by 23% YoY and 56% MoM. Indus Motor Company (INDU) saw sales of 2,369 units, up 48% YoY and 11% MoM. Honda Atlas Cars (HCAR) sold 1,269 units, down 5% YoY but up 11% MoM.
In the motorcycle segment, sales of two-wheelers and three-wheelers grew by 22% YoY and 26% MoM, totaling 130,960 units in September—marking the highest sales in 27 months. This growth was attributed to falling fuel prices and decreasing inflation, which enhanced customer purchasing power.
In contrast, the tractor segment faced declines, with Millat Tractors (MTL) selling 743 units, down 76% YoY and 39% MoM. Al Ghazi Tractors (AGTL) recorded 333 units, down 86% YoY and 77% MoM. Overall, tractor industry sales decreased by 80% YoY and 60% MoM, primarily due to an increase in sales tax from 10% to 18%.
Truck and bus sales, however, saw an upswing, increasing by 74% YoY and 6% MoM, reaching 319 units in September 2024.
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