Auto sales in Pakistan climb 43% year-on-year in July-February period

KARACHI: Pakistan's automotive sector witnessed a significant rise in sales during the first eight months of the current fiscal year, with car, sport utility vehicle (SUV), pickup, and van sales reaching 128,498 units from July to February, marking a 43 percent increase compared to 89,770 units in the same period last year.

According to data, February alone saw sales of 17,121 units, representing a 42 percent year-on-year (YoY) increase. However, compared to January, sales in February declined by 26 percent. The month-on-month (MoM) decrease was attributed mainly to the high base effect, as January typically records higher sales due to new-year vehicle registrations, along with fewer working days in February.

Myesha Sohail of Topline Securities stated that the robust YoY growth was driven by several factors, including the entry of new players in the market, reduced interest rates, easing inflation, and improving macroeconomic sentiment.

Among individual companies, Sazgar Engineering reported sales of 1,682 units in February, up 90 percent YoY but down 16 percent MoM. For the eight-month period, Sazgar's sales surged by 54 percent YoY to 10,896 units. Indus Motor Company (IMC), which assembles Toyota vehicles, recorded a 46 percent YoY increase in sales, though its sales dropped by 25 percent MoM to 3,000 units in February.

While the overall automotive sector showed strong performance, the tractor segment continued to face challenges, as per the report.