Amir Khan

Pakistan’s automotive industry experienced a marked fluctuation in vehicle sales in July 2024, which can primarily be attributed to the increase in withholding tax rates.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA), Toyota Corolla, Yaris, and Corolla Cross sales increased marginally to 1,106 units in July 2024 from 1,067 units in July 2023. However, Toyota Fortuner and Revo sales surged to 558 units from 301 units in the corresponding period last year. Despite these gains, Indus Motor Company, the largest auto manufacturer in Pakistan, experienced a 44% decrease in total sales month-on-month in July, reflecting the broader industry’s challenges. Sales of cars, sports utility vehicles (SUVs), pickups, and vans totalled 8,589 units. This figure represents a substantial 60% increase compared to July of the previous year but indicates a 36% decline from the sales recorded in June 2024.

Moreover, Honda’s performance was mixed. While the sales of Honda Civic and City models soared to 790 units from 208 units in July 2023, the combined sales of Honda BRV and HRV plunged to 141 units from 286 units in the previous year. Overall, Honda Atlas reported a 15% decline in total sales from the previous month. In contrast, Suzuki’s models exhibited varied results. The Suzuki Swift’s sales doubled to 502 units from 249 units in July 2023. However, the sales of Suzuki Cultus and Wagon R slowed to 96 and 139 units from 177 and 245 units, respectively. The sales of Suzuki Alto, Bolan, and Ravi witnessed significant growth, reaching 2,869, 288, and 576 units, respectively, compared to 1,440, 146, and 187 units in the previous year. Hyundai’s models faced a downturn, with the sales of Elantra, Sonata, and Tucson shrinking to 33, 34, and 113 units in July 2024, respectively, from 80, 90, and 328 units in July 2023.

However, the Hyundai Porter’s sales climbed to 349 units from 71 units, showing resilience in the commercial vehicle segment. The Sazgar Haval brand maintained strong performance with 824 units sold compared to just 122 units in July 2023, underscoring a growing preference for this brand. The two-and three-wheeler segment saw a 5% month-on-month decline but recorded a 15% year-on-year increase. In the commercial vehicle sector, truck and bus sales rose by 3% month-on-month and 57% year-on-year, reaching 307 units in July. The tractor segment, critical for the agricultural sector, experienced a downturn. Millat Tractors Ltd reported sales of 605 units, down 63% year-on-year and 78% month-on-month. Al-Ghazi Tractors Ltd recorded sales of 855 units, reflecting a 16% year-on-year and 40% month-on-month decline.

Credit: INP-WealthPk