Car sales in the country have increased by 62% in November 2024 as compared to November 2023, data from the Pakistan Automotive Manufacturers Association (PAMA) showed Thursday.

 

According to reports, the year-on-year increase was noted with 7,909 units sold in November 2024 as compared to a mere 4,875 units during the same month last year.

 

Car sales, however, recorded a 25% drop on a month-on-month basis with 10,557 units sold in October this year.

 

According to reports, car sales rose by 50% to 38,534 units against last year's 25,746 units for the first five months of the current fiscal year (July-November).

 

"This positive sign brings some motivation for the industry as it steadily moves back on track. Projections suggest that January to June 2025 will perform better than the previous fiscal year, indicating a recovery in the sector," reports quoted Mashood Khan, an expert from the auto sector, as saying.

 

These trends, however, could be temporary for long-term sustainability owing to domestic political instability and limited purchasing power restricting consistent growth, he added.

 

As per PAMA data, sales of 1300cc and above cars were recorded at 3,930 units, up 93% compared with November 2023 sales of 2,033 units. During this period, 1,000cc cars recorded sales of 381 units against 729 units during the same month last year. Below 1,000cc vehicles recorded a sale of 3,598 units, up 70% against 2,113 units in November 2023.

 

The sale of buses and trucks increased to 328 units in November 2024 from 145 units in November 2023. The sale of jeeps and pick-ups increased to 2,191 units from 1,600 units sold during the same period in 2023, data revealed.

 

The sale of rickshaws and motorbikes increased to 120,484 units during November 2024 against 88,493 units in the same period in 2023. Expanding on the statistics, reports quoted Myesha Sohail at Topline Securities as saying that the month-on-month decline was mainly due to the end-of-year effect, as buyers delay deliveries/purchase of the car in a bid to get new year registrations.

 

"Going forward, we expect sales to post strong growth from January 2025 owing to a recovery in auto finance amidst falling interest rates. While in December 2024, we may see some decline owing to the year-end impact."

 

As of 2023, Pakistan was the 15th largest producer of automobiles with a contribution of nearly $5.4 billion to the national exchequer. The country's auto market is among the fastest growing in Asia.