Nothing in the world is in permanent decline. Just as every rise sometimes declines, similarly, no decline lasts forever. It has to be transformed into a rise one day. While the automotive sector has energized the world, it has also given rise to the economies of many countries. America, Europe, Japan, Korea, and then China is living examples of this.
Talking about Pakistan, Suzuki, Toyota, Honda, Kia, Hyundai, Changan, HAVAL and MG companies have played their full role in the automotive sector and have kept Pakistan’s auto industry on the path of development by introducing new models.
However, in the past few years, this industry has faced a lot of decline in Pakistan. I am grateful to all those companies who not only maintained their existence in the most difficult period of the economic crisis, but also continued their efforts to bring this industry out of decline and give hope to its users with their skills and efforts.
Let’s look back at our past year, 2024, this year seems to be a harbinger of the auto industry beginning its journey towards a resurgence.
Pakistan’s automobile industry witnessed a robust performance in October 2024, with car sales soaring by 27% month-on-month (MoM) to 13,108 units, according to data from the Pakistan Automotive Manufacturers Association (PAMA). This marks a remarkable 112% increase in year-on-year (YoY) sales compared to October 2023, continuing the upward trajectory for the fiscal year with 40,693 units sold in the first four months—up 50% YoY from 27,162 units in the same period last year.
According to Topline Pakistan Research, the surge in sales is being attributed to improved auto financing options and a renewed sense of optimism in the market, as both consumers and manufacturers anticipate further growth with declining interest rates. Additionally, the introduction of new models, including Hybrid Electric Vehicles (HEVs) and fully electric vehicles (EVs), is expected to further drive market momentum in the coming months.
Among the key players, Sazgar Engineering (SAZEW) recorded the most impressive growth, with sales skyrocketing 296% YoY and 21% MoM to reach 1,002 units—its highest monthly sales ever. Pakistan Suzuki Motors Company (PSMC) also saw significant gains, with sales rising 40% MoM and 85% YoY to 7,040 units. The standout model contributing to PSMC’s success was Alto, with sales jumping 80% YoY and 49% MoM.
Indus Motor Company (IMC) and Honda Atlas Cars (HACPL) also posted strong performances. INDU saw a 142% YoY increase in sales, reaching 2,532 units, while HCAR’s sales surged by 230% YoY, hitting 1,514 units. However, Hyundai Nishat Motor reported a mixed performance, with a 34% YoY increase but a 26% MoM drop in sales to 504 units.
The motorcycle and three-wheeler segment also saw a significant boost. In September 2024, local bike manufacturers reported a 26% increase in sales, reaching 130,960 units, compared to 104,234 units in August 2024. On a year-on-year basis, bike sales surged by 22%, with 130,960 units sold in September 2024 versus 107,084 units during the same period last year.
The tractor industry showed signs of recovery as well, with sales up 61% MoM, reaching 1,733 units. The survey followed the Federal Board of Revenue’s (FBR) decision to rescind SRO 563(1)/2022, allowing tractors to be sold for non-agricultural uses, coupled with an increase in the sales tax rate from 10% to 14%.
The commercial vehicle segment also experienced solid growth, with truck and bus sales rising by 102% YoY and 10% MoM to reach 351 units in October 2024. This indicates a rebound in demand for commercial transportation amid improving economic conditions.
Let us now take a detailed look at the clear signs of the automotive sector’s turnaround in the past year. It should be noted that the facts and figures presented here have been taken from various platforms, research pages and relevant news channels with the intention of guiding the auto industry and its associates in Pakistan in good faith. However, we apologize in advance for any possible personal errors and seek correction.
Brand-Wise Sales Breakdown
- Atlas Honda: Sales saw a 22% increase, reaching 110,139 units in September, compared to 90,483 units in August 2024.
- Pak Suzuki: Registered an 8% increase, selling 2,049 bikes last month, up from 1,906 units in August 2024.
- Toyota Pakistan: Sales rose by 11%, with 2,367 units sold in September, up from 2,129 units in August 2024.
- Honda Atlas: Experienced an 11% growth, selling 1,269 units last month compared to 1,148 units in August 2024.
- Pak Suzuki Motors: Recorded a staggering 37% increase, with 5,013 vehicles sold in September compared to 3,653 cars in August 2024.
- Hyundai Nishat: Observed a 15% rise, selling 677 units last month compared to 591 units in August 2024.
- Sazgar Engineering: Saw a decline of 13%, selling 827 cars in September 2024, down from 952 units in August 2024.
- Looking at cumulative data:Up to October 2024 brand-wise, the leader was Suzuki, with 52,869 sales (+66.5%), in front of Toyota with 22,264 sales (+21.3%), Honda with 13,191 new registrations (+50.8%) and Hyundai with 8,030 units sold (+3.6%).
The outlook for Pakistan’s automotive market remains positive as interest rates are expected to decrease further, making financing more accessible. The continued introduction of new and more fuel-efficient models, particularly in the EV and HEV space, is anticipated to further boost consumer interest in the coming months.
However, despite the monthly recovery, the sector still recorded a 67% YoY decline in sales, primarily due to reduced demand from the agricultural sector.
With the sector showing broad-based growth across multiple segments, Pakistan’s automobile industry seems poised for continued recovery and expansion into 2025.
While we look back on our past year for our improvement, we should also review the possible hopes and achievements from our upcoming year 2025. In my professional career, I try to keep a close eye on sales and aftersales in the local automotive market in Pakistan, in addition to Hyundai Kia Honda MG and Motor Inside. Therefore, I consider the 2024 Auto Show to be a milestone and a new direction for the development of the auto sector for 2025 and the years to come.
Pakistan Auto Show 2024, conducted by PAAPAM-Pakistan association of Parts & Manufacturers Automotive Held at the Lahore Expo Centre.
This highly anticipated event saw the unveiling of two revolutionary models – the MG HS PHEV (True Hybrid) which is the 1st local assembledPHEV car in Pakistan and the MG Cyberster (EV) Supports Car– which promise to redefine the future of mobility in Pakistan.
A key highlight during this Auto Show 2024 at IMC’s stand, is their exploded view of their Corolla Cross, the first-ever, ‘Make in Pakistan’, Hybrid Electric Vehicle (HEV) that boasts the highest-ever local content.
BYD, a major player in the global New Energy Vehicle (NEV) sector, displayed its electric vehicle lineup in Pakistan through local partner Mega Motor Company (MMC) at the Pakistan Auto Show 2024 in Lahore. At the event, BYD opened bookings for its ATTO 3 and SEAL models, expanding its reach into the Pakistani market.
Kia Lucky Motors could bring EV5, EV6 or EV9. However, the recent updates have confirmed that company is all set to bring EV5 which, at first, will be unveiled at Pakistan Auto Show,2024.
Hyundai Nishat Motors has launched the 2025 Hyundai Elantra Hybrid at the Pakistan Auto Show 2024, marking a significant achievement as the country’s first locally produced hybrid sedan.
Changan Master displayed Deepal, along with two models, the L07 and has shown off its much-anticipated electric vehicle, Lumin, at the Pakistan Auto Show 2024 (PAPS). This new EV was only a showpiece and will not be launching anytime soon.
OKLA, a Chinese brand, has revealed its lineup of electric bikes and scooters in PAPS 2024. One of the highlighting electric bikes is OKLA OKG. It has a trail motorcycle look that makes this EV bike distinct from the others.
Ramza by New Asia has brought numerous electric scooters and an electric rickshaw at PAPS 2024. Among many e-bikes, it revealed one of its most selling models, the M8.
PAPS 2024 looks like an EV event as most of the companies have introduced or revealed their electric vehicles in it. MUVA has also displayed e-vehicles.
Federal Minister for Industries and Production, Rana Tanveer Hussain, has unveiled the New Energy Vehicle (NEV) Policy, aimed at transitioning 30% of vehicles in Pakistan to electric power by 2030. However, the Pakistan Automotive Manufacturers Association (PAMA) has voiced strong reservations, expressing concerns about the policy’s potential impact on the local auto industry.
The NEV policy includes a subsidy of PKR 50,000 for electric motorcycles and PKR 200,000 for three-wheelers (rickshaws), with a total allocation of PKR 4 billion. These subsidies will be distributed through auctions.
The government plans to establish a robust EV infrastructure, identifying 40 sites along the Peshawar-Karachi Motorway for EV charging stations, with a target of installing 3,000 stations by 2030. Electricity at these stations will be provided at subsidized rates, ensuring affordability.
Insha Allah, in the future we will shed light in detail on the new dimensions of the auto sector, especially the business opportunities and strategies in electric vehicles. We all pledge together that we will never let despair come to us. We will try to move quickly on strong and new paths of business development by relying on hard work and new technology. With our self-confidence and the help and grace of Allah and His Messenger, we will once again be leaders in every field. Perhaps the poet Allama Iqbal has said this for us:
This exclusive article has been published in Automark’s February-2025 printed and digital edition, written by Muhammad Mumtaz Hussain