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Express Tribune
6 days ago
- Automotive
- Express Tribune
Auto sector rebounds on demand for small cars
Automobiles can now be registered at the time of purchase. PHOTO: FILE Listen to article Pakistan's automobile industry staged a remarkable recovery in financial year 2024-25, with total passenger car sales reaching 148,023 units, up 43% year-on-year (YoY) from 103,829 units in FY24, marking the first significant rebound after years of suppressed volumes. The recovery was fueled by improved macroeconomic conditions, reduced interest rates and the launch of new models that revived consumer confidence, according to data released by the Pakistan Automotive Manufacturers Association (PAMA). The momentum continued into June 2025 as monthly sales came in at 21,773 units, a 36-month high, reflecting a 47% month-on-month (MoM) and 64% YoY increase. "In June 2025, automobile sales surged to a 36-month high of 21.8k units, registering a robust 47% MoM and 64% YoY growth," noted Menka Kirpalani, auto analyst at Arif Habib Limited. Analysts attribute this sharp surge to a wave of pre-buying ahead of proposed GST hike on vehicles up to 850cc from 12.5% to 18% effective from July 1, 2025. "June's boost was primarily driven by the unprecedented demand for small cars, particularly Alto," noted Myesha Sohail, auto analyst at Topline Securities. Alto sales hit a 39-month high of 9,497 units, leading to a 139% MoM increase in Pak Suzuki Motor Company's (PSMC) overall sales that reached 13,217 units. PSMC was the top performer, recording the highest MoM growth of 2.4 times. Sales of Cultus and Swift also recorded remarkable increases of 108% and 125% MoM, respectively, while Wagon R was the only PSMC model that posted a decline (-32% MoM). Sazgar Engineering Works Ltd (SAZEW) posted the second-highest monthly sales of 1,349 units in June 2025, up 47% MoM and 55% YoY. The launch of the facelifted Haval lineup contributed significantly to this jump. SAZEW's FY25 sales doubled, reaching 10,844 units versus 5,374 units in FY24. In contrast, Indus Motor Company (INDU) saw its June 2025 volumes fall 24% MoM to 3,687 units, with Corolla and Yaris sales dropping to 2,902 units and Fortuner and Hilux sales down to 785 units. However, INDU still managed a 25% YoY increase in FY25. Honda Atlas Cars (HCAR) posted a 10% MoM drop in June, selling 1,808 units. Despite the monthly decline, HCAR saw a 65% YoY increase in FY25 sales. Motorcycle and three-wheeler sales in June totalled 138,509 units, up 54% YoY but down 9% MoM, taking FY25 volumes to 1.5 million units, a 32% YoY increase. Meanwhile, the tractor segment rose 78% MoM in June to 2,791 units, driven largely by a 136% MoM surge in Millat Tractors' sales. However, overall FY25 tractor volumes were down 32% YoY, reflecting weak agricultural economics. Truck and bus sales reached 737 units in June – a 2.5 times YoY and 21% MoM rise. FY25 volumes doubled to 5,232 units compared to 2,644 in FY24, signalling some recovery in commercial demand. In contrast, India, the region's automotive giant, sold around 4.2 million units (FY25), dwarfing Pakistan's market by 28 times despite a slower 6-8% growth, as reported by the Society of Indian Automobile Manufacturers. Looking ahead, analysts at AHL and Topline Securities forecast continued growth in FY26 as interest rates decline further and companies prepare new launches, particularly hybrid and plug-in hybrid vehicles, catering to evolving consumer preferences and fuel economy needs.
Business Recorder
09-07-2025
- Automotive
- Business Recorder
Pak Suzuki revises bike prices in Pakistan following NEV tax imposition
Pak Suzuki Motor Company (PSMC) announced revised retail prices for its motorcycle lineup, effective July 1, 2025. This follows changes introduced in the federal budget 2025-26, including the implementation of a new NEV [New Energy Vehicle] levy on automobile sales. In a notification to dealers, Suzuki appreciated their continued efforts in promoting the brand's sales and services. Following the revision, the GD110S is priced at Rs362,600, whereas, the GS150 is available for Rs392,900. Meanwhile, the GSX125 now costs Rs504,900, and the GR150 is priced at Rs552,900. Moreover, the INAZUMA GW250JP carries a retail price of Rs1,252,400. In its notification, PSMC said that these prices are inclusive of ex-factory product cost, and freight charges incurred in delivering motorcycles to dealership premises. Days ago, Atlas Honda, which holds over half of the motorcycle market share in Pakistan, increased the prices of its bikes by Rs2,000 to Rs6,000 per unit on account of new taxes. The NEV levy, introduced in the Finance Act 2025, applies to all internal combustion engine motor vehicles and motorcycles and came into effect from July 1, 2025, increasing prices significantly. According to the details, the NEV levy covers all vehicle categories from basic motorcycles to luxury SUVs. However, the policy exempts new energy vehicles (electric and hybrid cars), vehicles manufactured exclusively for export, diplomatic mission vehicles, and those belonging to international organisations with diplomatic privileges. The latest pricing revision marks a direct impact of the newly imposed NEV Levy, as the government pushes for a shift towards cleaner transportation alternatives.
Business Recorder
03-07-2025
- Automotive
- Business Recorder
After Lucky Motor, Pak Suzuki hikes car prices amid new NEV levy
After Lucky Motor Corporation (LMC), Pak Suzuki Motor Company (PSMC) has become the latest auto manufacturer in Pakistan to increase the prices of its vehicles following changes introduced in the Federal Budget 2025-26, including the implementation of a new NEV [New Energy Vehicle] levy on automobile sales. 'No impact of an increase in financial economic cost has been transferred to the customer. The price revision solely reflects the increase in government-imposed taxes and levies,' PSMC said in its notice. The NEV levy, introduced in the Finance Act 2025, applies to all internal combustion engine motor vehicles and motorcycles and came into effect from July 1, 2025, increasing prices significantly. Pakistan advances NEV policy with Rs100bn subsidy According to the details, the NEV levy covers all vehicle categories from basic motorcycles to luxury SUVs. However, the policy exempts new energy vehicles (electric and hybrid cars), vehicles manufactured exclusively for export, diplomatic mission vehicles, and those belonging to international organisations with diplomatic privileges. According to PSMC's circular issued to dealers on Wednesday, the revised retail prices, which will become effective from July 1, 2025, reflect an increase of over Rs186,000. Among the most impacted models is the Alto VXL AGS, which now costs Rs3,32 million, marking a jump of Rs186,446 from its previous price. Meanwhile, the VXR and VXR AGS variants will now be available at Rs2.99 million and Rs3.17 million, following hikes of Rs167,861 and Rs177,480, respectively. For the Cultus variants, the Cultus VXR has seen a significant hike of Rs40,490, with its new price now set at Rs4,08 million. Meanwhile, the VXL and AGS variants are now available at Rs4.36 million and Rs4.59 million, respectively. For the Swift series, the price of GLX CVT has gone up by Rs47,190, bringing its revised retail price to Rs4.76 million. Additionally, Swift's GL MT and GL CVT variants are priced at Rs4.46 million and Rs4.60 million, following the latest revision. Every VX and VXR have experienced an increase of Rs163,230 and Rs166,200, respectively. Meanwhile, Ravi variants have seen hikes of Rs18,810 and Rs19,560. The PSMC notification clarified that the updated prices are inclusive of FED, Sales Tax, and NEV Levy, but exclude Advance Income Tax.
Business Recorder
13-06-2025
- Automotive
- Business Recorder
Auto sector in Pakistan posts strong growth in 11MFY25; car sales surge 35pc YoY
KARACHI: Pakistan's automobile sector demonstrated robust growth in the first eleven months of the fiscal year 2024-25, as car sales, motorbikes, and three-wheelers all posted significant gains, reflecting improved economic stability, better consumer confidence, and easing inflationary pressures. According to data compiled by the Pakistan Automotive Manufacturers Association (PAMA) total car sales in May 2025 reached 14,762 units, marking a 35 percent year-on-year increase and a 39 percent month-on-month growth over April 2025. The strong month-on-month recovery was largely attributed to a low sales base in April 2025, when road closures in Sindh due to strikes and operational challenges delayed deliveries, suppressing vehicle sales. As these issues eased, demand bounced back sharply in May, boosted further by a comparatively stable macroeconomic environment, lower financing costs, and improved consumer sentiment in anticipation of budget incentives. In terms of company-wise performance, Sazgar Engineering Works (SAZEW) posted the most remarkable increase, recording a 67 percent month-on-month rise and an 18 percent year-on-year growth. The impressive figures were driven by the April launch of a new facelift model of HAVAL, which gained strong market acceptance. SAZEW's total sales for 11MFY25 surged by 111 percent to 9,495 units, compared to 4,503 units in the same period last year. Indus Motor Company (INDU) also delivered a solid performance, with a 2.4 times year-on-year and a 48 percent month-on-month rise in sales to 4,829 units, marking its highest monthly sales in nearly three years. The growth was supported by increased demand for popular models like Corolla, Yaris, and Cross, whose combined sales reached a new 3-year high. Honda Atlas Cars (HCAR) reported a 69 percent year-on-year and a 17 percent month-on-month increase in sales to 2,005 units, while Pak Suzuki Motor Company (PSMC) saw a mixed result. PSMC posted a 38 percent month-on-month increase but remained down 8 percent compared to the same month last year, with May sales of 5,519 units. Hyundai Nishat Motors registered a healthy 58 percent year-on-year and 45 percent month-on-month rise to 1,307 units in May 2025. The two- and three-wheeler segment continued its impressive run, with total sales increasing by 26 percent year-on-year and 11 percent month-on-month to 150,175 units in May 2025; the highest monthly sales in three years. This brought cumulative 11MFY25 sales to 1.378 million units, up 30 percent year-on-year, as affordability and essential transport needs sustained demand in this segment. Pakistan's tractor industry, however, showed mixed trends. Total tractor sales in May 2025 stood at 2,184 units, representing a 29 percent year-on-year decline but a 36 percent month-on-month increase, as weak farm economics weighed on new purchase decisions. Within this segment, Millat Tractors sold 1,569 units in May 2025, down 34 percent compared to the previous year, while Al-Ghazi Tractors Limited (AGTL) sold 615 units, showing a 17 percent year-on-year decrease. Meanwhile, Pakistan's truck and bus segment recorded significant growth, with May 2025 sales rising by 147 percent year-on-year and 17 percent month-on-month to 610 units. Hino, Master, JAC, and Isuzu vehicles all posted increases, taking total 11MFY25 sales to 4,495 units, a 92 percent rise from 2,345 units in the corresponding period of the last fiscal year. Market analysts attributed this broad-based recovery in the auto sector to easing inflation, lower interest rates, and better financing options, coupled with a stable macroeconomic backdrop. The positive momentum was particularly noticeable in passenger cars and two- and three-wheeler categories, where pent-up demand from previous months converted into actual sales as operational disruptions eased. Looking ahead, Topline Securities expects the momentum to continue into the next fiscal year, driven by a combination of lower interest rates, improving vehicle financing options, and the introduction of new models equipped with updated engines, including hybrid and plug-in hybrid vehicles. Market watchers believe that as macroeconomic stability improves and consumer affordability rises, automobile sales volumes are likely to sustain their growth trajectory in FY26 as well. However, auto expert Mashood Khan has warned that the government's proposed downward trend in Additional Custom Duty, Regulatory Duty, and Custom Duty for easing the import of used vehicles will likely hit local manufacturing instead of increasing exports in the future. He foresees severe consequences for the local manufacturing industry. Without a thriving domestic industry, import bills will surge, and foreign reserves will take a hit, he added. The auto parts and other manufacturing sectors will face significant challenges. It's unclear how exports will increase without a robust local industry, he added. Copyright Business Recorder, 2025
Business Recorder
13-06-2025
- Automotive
- Business Recorder
Auto sector posts strong growth in 11MFY25; car sales surge 35pc YoY
KARACHI: Pakistan's automobile sector demonstrated robust growth in the first eleven months of the fiscal year 2024-25, as car sales, motorbikes, and three-wheelers all posted significant gains, reflecting improved economic stability, better consumer confidence, and easing inflationary pressures. According to data compiled by the Pakistan Automotive Manufacturers Association (PAMA) total car sales in May 2025 reached 14,762 units, marking a 35 percent year-on-year increase and a 39 percent month-on-month growth over April 2025. The strong month-on-month recovery was largely attributed to a low sales base in April 2025, when road closures in Sindh due to strikes and operational challenges delayed deliveries, suppressing vehicle sales. As these issues eased, demand bounced back sharply in May, boosted further by a comparatively stable macroeconomic environment, lower financing costs, and improved consumer sentiment in anticipation of budget incentives. In terms of company-wise performance, Sazgar Engineering Works (SAZEW) posted the most remarkable increase, recording a 67 percent month-on-month rise and an 18 percent year-on-year growth. The impressive figures were driven by the April launch of a new facelift model of HAVAL, which gained strong market acceptance. SAZEW's total sales for 11MFY25 surged by 111 percent to 9,495 units, compared to 4,503 units in the same period last year. Indus Motor Company (INDU) also delivered a solid performance, with a 2.4 times year-on-year and a 48 percent month-on-month rise in sales to 4,829 units, marking its highest monthly sales in nearly three years. The growth was supported by increased demand for popular models like Corolla, Yaris, and Cross, whose combined sales reached a new 3-year high. Honda Atlas Cars (HCAR) reported a 69 percent year-on-year and a 17 percent month-on-month increase in sales to 2,005 units, while Pak Suzuki Motor Company (PSMC) saw a mixed result. PSMC posted a 38 percent month-on-month increase but remained down 8 percent compared to the same month last year, with May sales of 5,519 units. Hyundai Nishat Motors registered a healthy 58 percent year-on-year and 45 percent month-on-month rise to 1,307 units in May 2025. The two- and three-wheeler segment continued its impressive run, with total sales increasing by 26 percent year-on-year and 11 percent month-on-month to 150,175 units in May 2025; the highest monthly sales in three years. This brought cumulative 11MFY25 sales to 1.378 million units, up 30 percent year-on-year, as affordability and essential transport needs sustained demand in this segment. Pakistan's tractor industry, however, showed mixed trends. Total tractor sales in May 2025 stood at 2,184 units, representing a 29 percent year-on-year decline but a 36 percent month-on-month increase, as weak farm economics weighed on new purchase decisions. Within this segment, Millat Tractors sold 1,569 units in May 2025, down 34 percent compared to the previous year, while Al-Ghazi Tractors Limited (AGTL) sold 615 units, showing a 17 percent year-on-year decrease. Meanwhile, Pakistan's truck and bus segment recorded significant growth, with May 2025 sales rising by 147 percent year-on-year and 17 percent month-on-month to 610 units. Hino, Master, JAC, and Isuzu vehicles all posted increases, taking total 11MFY25 sales to 4,495 units, a 92 percent rise from 2,345 units in the corresponding period of the last fiscal year. Market analysts attributed this broad-based recovery in the auto sector to easing inflation, lower interest rates, and better financing options, coupled with a stable macroeconomic backdrop. The positive momentum was particularly noticeable in passenger cars and two- and three-wheeler categories, where pent-up demand from previous months converted into actual sales as operational disruptions eased. Looking ahead, Topline Securities expects the momentum to continue into the next fiscal year, driven by a combination of lower interest rates, improving vehicle financing options, and the introduction of new models equipped with updated engines, including hybrid and plug-in hybrid vehicles. Market watchers believe that as macroeconomic stability improves and consumer affordability rises, automobile sales volumes are likely to sustain their growth trajectory in FY26 as well. However, auto expert Mashood Khan has warned that the government's proposed downward trend in Additional Custom Duty, Regulatory Duty, and Custom Duty for easing the import of used vehicles will likely hit local manufacturing instead of increasing exports in the future. He foresees severe consequences for the local manufacturing industry. Without a thriving domestic industry, import bills will surge, and foreign reserves will take a hit, he added. The auto parts and other manufacturing sectors will face significant challenges. It's unclear how exports will increase without a robust local industry, he added. Copyright Business Recorder, 2025
