Car Sales Soar to 7,802 Units in January, Marking Highest Figures Since December 2022

In a significant uptrend for the automotive industry, passenger car sales experienced an impressive 58.71% month-on-month surge in January 2024, reaching a total of 7,802 units. This marks a substantial increase from the 4,916 units recorded in December 2023, as reported by the latest data from the Pakistan Automotive Manufacturers Association (PAMA).

On a year-on-year basis, the growth is notable as well, with a 29.58% increase compared to the 6,021 cars sold in January 2023.

Looking at the cumulative figures for the first seven months of the fiscal year 2024 (7MFY24), total car sales amounted to 38,464 units. However, this represents a 49% decrease from the sales recorded in the same period of the previous fiscal year (7MFY23).

The production side of the equation also saw fluctuations. Total production of passenger cars in 7MFY24 stood at 40,400 units, reflecting a 47.6% year-on-year decline from the 77,101 units manufactured in 7MFY23.

For January alone, car production surged by 44.48% month-on-month, reaching 9,614 units, a positive shift from the 6,654 units in December 2023. On a year-on-year basis, this signifies a substantial 67.99% increase from the production of 5,723 units in January 2023.

The resurgence in the auto industry comes after a period of challenges, including high inflation, currency depreciation, low demand, and political uncertainty. These difficulties were further exacerbated by supply chain disruptions affecting the procurement of crucial parts and materials.

However, with the recent decision by the State Bank of Pakistan (SBP) to ease import restrictions, the auto sector has managed to regain its strength.

Breaking down the sales data, the '1300cc and Above' category dominated, with 4,091 units sold in January. Within this category, Toyota (Corolla, Yaris & Corolla Cross) secured the highest sales at 2,143 units, followed by Honda Cars (Civic & City) with 1,207 units sold.

The 'Below 1000cc' category witnessed the second-highest sales at 3,118 units, with Suzuki Alto leading the way at 2,983 units, accompanied by 135 units of Suzuki Bolan.

In the '1000cc' segment, 593 units were sold in January 2024.

Truck sales experienced a remarkable surge, reaching 242 units, a 2.31x year-on-year increase from the 105 units sold in the same period last year.

The combined sales of motorbikes and three-wheelers rose by 27.02% month-on-month, totaling 104,619 units, compared to 82,362 in December 2023. However, on a year-on-year basis, there was a 4.51% decline from the 109,558 units sold in January 2023.

The production of motorbikes and three-wheelers reached 102,672 units, indicating a 22.13% month-on-month increase but a 5.38% year-on-year decrease.

Notably, Honda held the majority share in both the production and sales of 2/3 wheelers in January, reporting sales of 92,041 units and production of 90,898 units.