ISLAMABAD: Automobile sales experienced a notable surge of 30% in January this year compared to the corresponding month last year, attributed to a combination of factors including a favorable base effect and the introduction of new models, local media reported on Wednesday. Despite this positive momentum, industry data released on Tuesday revealed a concerning trend, with sales plummeting by 49% in the initial seven months of the fiscal year.
Data disclosed by the Pakistan Automotive Manufacturers Association (PAMA) indicated that passenger car sales surged by 30% in January 2024, reaching 7,802 units as opposed to 6,021 units in January 2023. However, the cumulative sales for the first seven months of FY24 amounted to 38,464 units, marking a significant decline of 49% from the corresponding period in FY23.
Furthermore, January 2024 witnessed a notable uptick of 59% in sales compared to December 2023, reaching 4,916 units. Mashood Ali Khan, an automotive expert and former chairman of PAAPAM, attributed the January sales surge to the resolution of production issues that plagued the industry in the previous year.
In terms of specific vehicle categories, sales of 1300cc and above cars experienced a marginal decrease of 3% in January 2024 compared to the same period last year. Conversely, sales of 1,000cc cars recorded a significant decline, with Suzuki’s Alto witnessing a substantial increase in sales owing to improved production conditions.
On the commercial vehicle front, buses, trucks, jeeps, and pickups observed declines in sales, while tractor sales registered a notable increase of 46% month-on-month and 12% year-on-year in January 2024. The upward trajectory in tractor sales for 7MFY24 was attributed to the comparably lower base of the previous year due to adverse weather conditions.
Despite the surge in automobile sales, challenges such as escalating car prices, expensive auto financing, and constrained consumer purchasing power continued to exert pressure on the industry’s performance during 7MFY24, underscoring the need for sustained efforts to address these underlying issues.
