AGTL Records Sharpest Decline with 66% YoY Drop to 410 Units in February 2025

Al-Ghazi Tractors Limited (AGTL) faced the sharpest decline in Pakistan’s auto industry in February 2025, selling only 410 units, marking a 66% year-on-year (YoY) drop from 1,208 units in February 2024. Various economic conditions produce ongoing troubles for the tractor business which depends directly on agricultural activities and government policies.

The combination of late crop payments together with increased interest rates and elevated production prices generated by rising raw material costs and currency devaluation caused AGTL to experience substantial declines in tractor sales. The 411 units sold by AGTL in January 2025 represent a continuous decline in agricultural vehicle sales because their February 2025 sales numbers stayed exactly the same.

Overall Auto Market Performance

While AGTL suffered a sharp decline, the broader auto industry saw mixed results in February 2025. Pak Suzuki Motor Company (PSMC) was identified as the market leader in February 2025, having sold 5,330 units. This figure represents a 9% year-over-year increase, though it includes a 35% month-over-month decrease. Suzuki’s Alto remained the top-selling model, but sales were impeded by funding expenses and vehicle costs.

In February, Honda Atlas Cars Pakistan (HCAR) delivered 2,054 units which resulted in a 35% YoY growth because of strong Civic and City model popularity. The sales figures reported by Hyundai Nishat Motors showed a 35% rise YoY through 1,052 units while market competition remains challenging for the company.

Sazgar Engineering Works Limited (SAZEW) achieved the most impressive performance by increasing its four-wheeler sales by 113% year over year, resulting in a total of 883 units. Sazgar’s SUVs and crossover products, which were assembled locally, were deemed viable alternatives to imported vehicles, resulting in substantial market expansion.

The future of AGTL after the Covid-19 pandemic is contingent upon the stability of the agricultural sector, government policies, and recent financial assistance for producers. The Pakistani tractor industry will remain stagnant due to the ongoing challenges, which will also result in a decrease in rural economic growth rates.

Despite Suzuki’s market leadership and Honda’s strong growth, the overall auto industry remains under pressure, with affordability and financing costs emerging as key barriers to sustained recovery.