Auto Sales Surge by 54% in July-December Amid Declining Interest Rates

Islamabad: The automotive sector demonstrated robust performance during the first half of the fiscal year 2025 (IHFY25), except for the tractor segment. Despite Sazgar Engineering Works Ltd not disclosing its sales figures, the overall industry reported significant growth.

Sales of cars, light commercial vehicles (LCVs), pickups, and vans surged by 54%, reaching 60,676 units during July–December 2024, compared to 39,453 units in the same period last year. This indeed translated into a growth of 6.7% where the factors that boosted this growth included, the low interest rate, higher remittances, and low inflation.

Car sales in December 2024 stood at 9,820 and the YoY growth rate registered was 69 percent. The monthly sales, however, fell 3% MoM, which is normal during the year-end since buyers would wait until the new year to register their new cars.

Key Players in the Automotive Market

• Kia Lucky Motors has announced impressive sales growth of 30–40% for 2024, with projected volumes ranging from 6,500 to 7,000 units. In 2024, the overall car market saw a remarkable 51% increase in sales compared to the previous year, with Kia’s performance contributing to this impressive growth.
• Indus Motor Company (IMC) experienced a 25% MoM drop in December 2024 sales, with 1,665 units sold compared to 2,194 units in November. In an impressive turn of events, IMC’s overall sales for IHFY25 surged by 74%, hitting 12,541 units compared to 7,198 units during the same timeframe last year.
• Pak Suzuki Motor Company showcased impressive performance with December 2024 sales increasing by 25% month-over-month and 58% year-over-year, reaching a total of 5,903 units. This led to a remarkable 40% year-over-year increase in sales for IHFY25, reaching a total of 30,817 units, compared to 21,997 units previously.
• Honda Atlas Cars Ltd recorded sales of 1,110 units in December 2024, showing a minor decrease from the 1,112 units sold in November. However, the year-over-year growth reached 23% when compared to the 901 units from December 2023. Honda’s cumulative IHFY25 sales rose 45% to 7,084 units, compared to 4,885 units in the previous fiscal period.
• Hyundai Nishat Motors has announced a 14% rise in IHFY25 sales, totaling 4,242 units, up from 3,730 units the previous year. In December, sales reached 918 units, showcasing a remarkable 27% increase month-over-month and an outstanding 158% growth year-over-year.

Two-wheeler and three-wheeler sales increased by 43 percent YoY to 118091 units in December 2024 but were down by two percent MoM. IHFY25’s overall sales reached an additional 696,455, 29% higher than the 541,821 sales of the preceding fiscal year.

The tractor segment remained weak, and the sale figures went down to 17397 units for IHFY25 from 23411 units in the corresponding IHFY 24, a YoY dip of 26%. Truck and bus sales in December 2024 Reported a YoY increase of 84% and stood at 193 units.

However, MoM sales were reduced by 41%. Sales of trucks and buses in IHFY25 rose by 87% to 1,798 units from 962 units in the same period last year.

Despite sectoral disparities, the overall automotive industry displayed strong growth, buoyed by favorable economic conditions, increased consumer confidence, and the availability of new models.