KARACHI:
Passenger car sales rose 51.3% to 46,398 units during the first six months of the current fiscal year (H1FY2025) compared to the same period last year, driven by skyrocketing remittances, falling interest rates and the arrival of a new year, which boosted the confidence of local buyers.
Auto sales figures also recorded a slight month-on-month decline. However, the cumulative total during the period indicates positive signs for the country’s beleaguered auto industry.
According to Pakistan Automobile Manufacturers Association (PAMA), sales of trucks and buses increased by 89.1% to 1,494 units and 76.7% to 304 units respectively. Sales of jeeps and pickups increased 61.2% to 14,174 units. Meanwhile, sales of two- and three-wheeled vehicles (motorbikes and rickshaws) increased by 28.5% to 696,455 units.
However, the agricultural tractor industry remains a concern as it is still in decline and tractor sales fell 25.7% to 17,397 units during the period, largely due to the economic challenges faced by small farmers. producers and the impact of climate change. Notably, lackluster tractor sales persisted during the first five months of the fiscal year (July 2024 to November 2024).
Interestingly, for the first time after the first five months of the current fiscal year, tractor sales in December 2024 gained momentum, shooting up to 7,030 units. This improvement was attributed to the business sector, with some local and international companies entering the agricultural sector to improve exports of agricultural products.
Commenting on vehicle sales, automobile sector analyst Mashood Khan told The Express PAkGazette that automobile sales data released by PAMA indicates slight growth in the four-wheeler market. This growth can be attributed to several factors, including a gradual drop in the interest rate to 13% from an all-time high of 22% and a significant inflow of worker remittances, which reached $3.1 billion in December 2024. Families who receive significant foreign exchange from relatives abroad were likely to invest in the purchase of new cars.
A couple of Chinese four-wheeler brands are gaining popularity in the local market, offering new vehicles with more features at a lower cost compared to established foreign brands.
“We can now predict that 2025 will be much better than 2023 and 2024 in terms of vehicle sales. However, although our benchmark for annual vehicle sales generally prevails around 250,000 units, we may not reach it, but we will get close. him”. Khan said.
In the two-wheeled vehicle (motorcycle) market, Japanese fuel-powered bicycle brands continue to rise, supported mainly by middle-class families. While more than three dozen Chinese electric motorcycle brands have entered the local market, Japanese brands have maintained their dominant position.
Khan highlighted the industry’s challenges and said the truck and bus market is unlikely to make significant progress in the next six months. Additionally, while 2023 and 2024 were better years for the tractor industry, a full recovery will take time.
