Car Sales Increase 1.94% In February 2024

Sales of new passenger cars in Pakistan edged up 1.94% on a month-on-month basis in February 2024, clocking in at 7,953 units compared to 7,802 units sold in January 2024, according to the latest data released by the Pakistan Automotive Manufacturers Association (PAMA).

However, on a year-on-year basis, sales of new passenger cars showed a much better performance with 2.18x more sales compared to the 3,642 cars sold a year earlier in February 2023. However, on the downside, overall sales in 8MFY24 were just 46,417 units, which is approximately 40.93% less than 8MFY23’s total sales.

But while the sales show improvement in February, production numbers have dwindled. Production in February 2024 was recorded at 8,002 units, down by 16.77% MoM compared to 9,614 in January 2023. The total production of passenger cars was recorded at 48,402 units in 8MFY24, down 40.84% YoY as compared to 81,809 units made/assembled by PAMA member companies in 8MFY23.

The data released by PAMA further showed that the maximum number of sales was made within the ‘1300cc and Above’ category at 3,941 units in February. Within this category, Toyota (Corolla, Yaris & Corolla Cross) recorded the highest sales at 1,759 units, followed by Honda sedans (Civic & City) which sold 1,375 units.

The second highest number of sales was recorded within the ‘Below 1000cc’ category at 3,556 units in February. Within this category, Suzuki Alto recorded sales of 3,373 units, while 183 units of Suzuki Bolan were sold. Lastly, the ‘1000cc segment’ witnessed a sale of 456 units in February 2024. The segment consists of Suzuki Cultus & Wagon R only.

The auto industry in Pakistan has witnessed a slight rebound since January 2024 as it had long been struggling with various issues including high inflation, currency depreciation, low demand, and political & economic uncertainty. These issues, compounded by supply chain disruptions in securing critical parts and materials, added to the woes of the sector.

However, now with the State Bank of Pakistan (SBP)’s decision to ease import restrictions, the auto sector has started to somewhat regain its lost position but is still far from reaching the numbers from its glory days.