Car Sales Fell by 22% in November 2024 From October: Topline Securities

Based on PAMA numbers, car sales in Pakistan clocked in at 10,163 units in Nov 2024, reflecting a 57% year-on-year (YoY) rise but a 22% month-on-month (MoM) fall in sales. This takes sales in the first 5 months of fiscal year (FY) 2025 to 50,856 units a 51% YoY rise from 33,637 units in the first 5 months of FY24.

MoM decline is mainly due to the end-of-year effect, as buyers delay deliveries/purchase of the car in a bid to get new year registrations, revealed Topline Research.

Sazgar Engineering (SAZEW) saw the most significant MoM fall of 42% to 584 units in Nov 2024, while production of SAZEW remained almost flattish (down 1%) on a MoM basis at 993 units. Indus Motor Company (INDU) saw a decline of 13% MoM to 2,194 units in Nov 2024. On a YoY basis, the company reported an increase of 129% YoY, led by a significant jump in Toyota Sales.

Pakistan Suzuki Motors Company (PSMC) recorded sales of 5,374 units a 53% YoY rise while a 26% MoM fall. Honda Atlas Cars (HCAR) recorded sales of 1,112 units, up 10% YoY while down 27% MoM.

Hyundai Nishat Motor saw an 11% YoY and 21% MoM rise to 724 units in Nov 2024, making it the only company to report a MoM rise during the month led by a 45% jump in Tucson sales.

Pakistan also started witnessing sales of locally assembled electric vehicles, as Dewan Farooque Motors (DFML) sold 63 units of the newly launched Honri.

Motorcycles, Tractors and 3-Wheeler Sales

In the motorcycle segment, 2-wheeler and 3-wheeler sales increased by 36% YoY while down 12% MoM totaling 120,484 units in Nov 2024.

The tractor industry recorded sales of 3,428 units, a decrease of 2% YoY while recovering 98% MoM. This was mainly due to the rescinding of SRO 563(1)/2022. Company-wise, Al-Ghazi Tractors (AGTL) saw sales of 2,012 units, up 187% YoY and 584% MoM. Millat Tractors (MTL) recorded sales of 1,416 units, down 50% YoY and 2% MoM in Nov 2024.

Tractor sales in the first 5 months of FY25 stood at 10,367 units a 50% YoY decline. Truck and bus sales were up 126% YoY but down 7% MoM, reaching 328 units in Nov 2024. Going forward we expect sales to post strong growth from Jan 2025 owing to recovery in auto finance amidst falling interest rates. While in Dec 2024, we may see some decline in MoM owing to the year-end impact.