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KARACHI: Barring the massive drop in tractor sales by 57 per cent to 5,206 units mainly due to sales tax hike, 1QFY25 proved highly satisfactory for the entire auto sector, reflecting a jump of 19-75pc compared to the same period last fiscal year.
As per data of Pakistan Automotive Manufacturers Association, car sales surged by 25pc to 20,068 units during July-Sept FY25 from 16,021 units in the same period last fiscal, followed by a 51pc rise in sales of jeeps and pickups to 7,517 units from 4,961 units year-on-year.
Truck sales also swelled by 75pc to 772 units from 442 while bus sales soared by 60pc to 926 from 528 units in July-Sept FY24. Two/three-wheeler sales rose by 19pc to 320,187 units from 232,139 units in which the share of Atlas Honda Limited stood at 270,877 units as compared to 232,139 in 1QFY24. The month-on-month (MoM) sales of cars also improved to 7,794 units in September 2024 from 6,417 in August 2024 while sales of pickups, jeeps, vans and SUVs increased to 2,503 units from 2,282 in August 2024.
Myesha Sohail of Top Line Securities said an upward trend in sales of cars, SUVs, pickups and vans in September was driven by backlog of Suzuki cars which were delivered this month. She said high Toyota vehicle sales were propelled by high demand of Yaris facelift variant and Corolla Cross Hybrid.
Two/three-wheeler sales increased by 22pc year-on-year (YoY) and 26pc MoM in September 2024 to 130,960 units, the highest sales after 27 months. The rise in sales of motorcycles is due to falling fuel prices and inflation, creating relatively better purchasing power for customers, Myesha said.
In tractor segment, Millat Tractors Limited saw sales of 743 units in September 2024, down 76pc YoY and 39pc MoM, while Al Ghazi Tractors Limited recorded sales of 333 units, down 86pc YoY and 77pc MoM in September 2024. This brings total tractor industry sales to 1,076 units, a decrease of 80pc YoY and 60pc MoM, mainly due to an increase in sales tax from 10pc to 18pc. Auto sector expert Mashood Ali Khan said interest rates are trending downward, but until they reach single digits, the four-wheeler sector is unlikely to see major growth. Lucky Motors’ offer of interest-free financing for consumers has attracted those who avoid traditional interest-based loans.
Published in Dawn, October 11th, 2024
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