KARACHI: Sales of automobiles, LCVs, trucks, and vans increased by 27% month-over-month (MoM) and 112% year-over-year (YoY) in October, reaching 13,108 units, despite a persistent decline in demand for tractors. This increased sales by 50% during 4MFY25 to 40,693 units.
Improved auto financing and a general feeling of optimism and stability in the market are the main drivers of this increase in sales, according to Myesha Sohail of Topline Securities. She also predicted that auto sales would continue to rise as a result of a sustained decline in interest rates and the introduction of new models, particularly electric and hybrid electric vehicles (HEVs and EVs).
The largest MoM and YoY increase was recorded by Pak Suzuki Motors Company (PSMC), which increased by 40 and 85 percent to 7,040 units in October. In 4MFY25, Pak Suzuki’s total sales were 20,176, a 37 percent increase from the previous year.
With 2,532 units sold, Indus Motor Company (IMC) had a 142 percent YoY and 7 percent MoM increase in sales. In addition, the company sold 56% more cars in July–October of FY25 than it did at the same time last fiscal year.
Sales of Honda Atlas Cars Ltd. (HACL) increased by 230 percent year-over-year and 19 percent month-over-month to 1,514 units, while sales from July to October of FY25 increased by 64 percent to 4,862 units over the same time in the previous fiscal year.
According to Myesha, Sazgar Engineering Works Ltd. (SEWL) had its highest-ever sales in October, with a notable 296 percent YoY and 21 percent MoM increase to 1,002 units. In comparison to the previous fiscal year, SEWL sales increased from 265 percent to 3,607 percent during 4MFY25.
Compared to the same period previous fiscal year, Hyundai Nishat Motors’ (HNM) four-month FY25 sales remained 10 percent lower at 2,301 units, despite a 34 percent YoY increase and a 26 percent MoM decline to 504 units in October.
Sales of motorbikes and rickshaws
According to her, sales of two- and three-wheelers rose by 35 percent year over year and 5 percent month over month in October, reaching their highest level in 28 months with 137,693 units sold. The motorcycle market is growing because consumers have more spending power as a result of declining inflation. Sales of two- and three-wheelers increased from 370,966 units during the same period last fiscal year to 457,880 units during 4MFY25.
Declining tractor demand
The tractor industry as a whole had sales of 1,733 units, down 67 percent year over year but up 61 percent month over month. This was mostly because of Millat Tractors, which saw sales of 1,439 units, down 52 percent year over year but up 94 percent month over month.
In October, Al Ghazi Tractors (AGTL) sold 294 units, a decrease of 87 percent year over year and 12 percent month over month. During 4MFY25, total tractor sales (Millat and Al-Ghazi) decreased by 60% to 6,939 from 17,296 during the same time in the previous fiscal year.
Due to the Federal Board of Revenue’s revocation of SRO 563(1)/2022, which permitted the sale of tractors for non-agricultural use, she said tractor sales increased this month.
In order to harmonize manufacturers’ input-output claims and help clear the backlog of refund claims, the sales tax rate was also increased from 10% to 14%.
Sales of trucks and buses increased from 712 to 1,277 units in 4MFY25.
