ISLAMABAD: Despite facing economic headwinds, the automotive sector experienced a significant surge in sales during February ’24, signalling a potential turnaround in the market’s fortunes.
According to industry reports, automobile (PC&LCVs) sales surged by an impressive 57% year-on-year in February ’24, attributed largely to a low base effect resulting from import restrictions imposed the previous year. However, a slight decline of 3% month-on-month was noted, reflecting some volatility in the market.
The cumulative sales for the first eight months of the fiscal year ’24 saw a decline of 43% year-on-year, totalling only 56,278 units. This decline was attributed to factors such as elevated car prices and record interest rates, which dampened consumer demand.
Total automobile sales in February ’24 stood at 12,808 units, marking a notable increase of 31% year-on-year, albeit with a modest 4% month-on-month variation. A detailed breakdown by players revealed varied performances, with INDU and PSMC witnessing sales increases of 13% and a remarkable 5.0x year-on-year, respectively. However, HCAR experienced a 7% year-on-year decline in sales during the same period.
The impact of this surge in sales was felt across different segments of the automotive market. The 1000/1300cc segment saw impressive year-on-year growth rates of 176% and 39%, respectively, while the 800cc segment registered an astonishing surge of 6.2x year-on-year. However, sequential declines of 23% and 4% were observed in the 1000/1300cc segments, respectively, reflecting some market volatility.
PSMC emerged as a standout performer, with volumetric sales reaching 4,885 units in February ’24, marking a remarkable 5.0x year-on-year increase. Similarly, INDU reported a 13% year-on-year increase in sales, driven by a surge in sales of models like Corolla, Cross, and Yaris. However, HCAR witnessed a slight dip in sales volume, mainly due to decreased demand for models like BR-V and HR-V.
The surge in automobile sales in February ’24 signals a potential revival in the automotive market, despite ongoing economic challenges. Industry experts remain cautiously optimistic about the sector’s prospects, emphasizing the need for sustained efforts to address underlying economic issues and foster long-term growth.
