Car sales in Pakistan significantly increased by 73% month-on-month (MoM) to 17,010 units as compared to the previous month, according to data shared by the Pakistan Automotive Manufacturers Association (PAMA) on Tuesday.
On a yearly basis, car sales ( passenger cars, jeeps, and pickups) in the country soared by 61% against the same month last year.
“The MoM increase is primarily due to the low base effect, as December sales are typically low with buyers delaying purchases for new-year registrations, and Sazgar Engineering Works’ (SAZEW) data not being released leading to an uptick in January,” Myesha Sohail, an auto sector analyst at Topline Research, said.
She added that the sales data for January 2025 include SAZEW’s two months sales (December 2024 and January 2025), as the last month’s numbers were not release earlier.
“The year-on-year [YoY] rise in the car sales is driven by lowered interest rates, improved consumer confidence, and the introduction of newer variants and models,” Myesha Sohail said.
Meanwhile, a separate Topline Research report stated that the sales in January hit 31-month high, as such quantum was last recorded in January 2022, according to the report.
The outstanding growth in January sales was exceptionally led by Toyota high-end LCV Revo/Hilux, Honda City, Suzuki Alto, Hyundai Sonata and Sazgar SUVs, Optimus Securities’ analyst Hamad Ahmed said in a commentary.
According to the analyst, delayed buying played a catalyst role in the surge in car sales recorded in January.
People wait for new models and also want to get their vehicles registered in the new year, Ahmed explained.
A colossal cut of 10-percentage points in the benchmark interest rate since June 2024 to 12% at present also made bank financing feasible for the four-wheel buyers.
Besides, Pakistan’s headline inflation clocked in at 2.4% on a YoY basis in January 2025, a reading below that of December 2024 when it stood at 4.1%, showed Pakistan Bureau of Statistics (PBS) data.
Cumulatively, the car sales surged 55% to 77,686 units in the first seven-month (Jul-Jan) of current fiscal year 2024-25 (FY25) compared to 49,989 units in the same period of the last year.
Two and three-wheeler sales rose 33% YoY and 18% MoM to 139,161 units, a 31-month high (last recorded on Jun 22). The Jul-Jan FY25 sales clocked in at 836,000 units, a 29% YoY rise.
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