KARACHI:
Passenger car sales went up by 49.7% to 38,534 units during the first five months of the current fiscal year compared to the same period last year because of a host of reasons, including various schemes being offered by auto companies, lower interest rates, the upcoming new year, and others.
Moreover, the data of car sales shows a slight month-on-month fall but a year-on-year growth, while giving some optimistic and encouraging signs for the industry as customers usually go on a buying and spending spree in the ending months of every year.
The Pakistan Automotive Manufacturers Association (PAMA) reported on Monday that truck and bus sales increased by 91.1% to 1,368 units and by 68.1% to 237 units, respectively. Jeep and pick-up sales surged by 55.4% to 12,259 units, while two-and-three-wheeler sales (motorbikes and rickshaws) rose by 25.9% to 578,364 units. However, the farm tractor industry experienced a decline, with tractor sales sliding by 50.2% to 10,367 units.
For the first time, the association also shared the data of one brand of the new energy vehicles (NEVs)/electric vehicles (EVs) that 63 NEVs were sold last month.
Auto sector expert Mashood Khan said recent automotive data indicates a slight month-on-month decline but a year-on-year upward trend. “This positive sign brings some motivation for the industry as it steadily moves back on track,” he said, adding that projections for January to June 2025 suggest improved performance compared to the previous fiscal year.
However, these trends appear to be temporary when assessed for long-term sustainability. Key challenges, including domestic political instability and limited purchasing power among the general population, continue to restrict consistent growth. Despite these hurdles, the anticipated reduction in interest rates this month could provide much-needed relief to businesses and consumers alike.
A notable development is the introduction of locally assembled EVs. While this represents a leap toward modernisation, these offerings seem tailored primarily for the elite class. Expanding access to EVs would require manufacturers to focus on affordability and infrastructure gaps, particularly the availability of EV charging stations.
On the other hand, the two-wheeler EV market holds substantial potential and could serve as a transformative force in bridging affordability gaps and contributing to a more sustainable future.
Another auto sector expert and analyst, Muhammad Sabir Shaikh, said there are approximately 13 gasoline auto companies in the market, and a couple of them have launched various six-to-18-month cash schemes without interest. These schemes being offered by the companies and the reduction in interest rates helped auto sales rise. He added that NEVs could be game changers in the next couple of years if companies transfer technology, localize production, and develop necessary infrastructure, including charging stations and workshops.
