Pakistan’s automobile gross sales noticed a considerable improve in January 2025, rising 61% year-on-year (YoY) to succeed in 139,161 models, a 2.5-year excessive. This surge was pushed by favorable components, together with decrease rates of interest, heightened shopper confidence, and the introduction of recent automobile variants.
In keeping with a report by Topline Securities, automobile gross sales for the month reached 17,010 models, marking a 73% month-on-month (MoM) improve in comparison with December 2024.
The surge in gross sales comes after the State Financial institution of Pakistan (SBP) diminished its key rate of interest by 100 foundation factors to 12% in December 2024, following a collection of fee cuts from a peak of twenty-two% in June 2024. This discount has led to decrease rates of interest on loans, together with auto loans, making automobiles extra reasonably priced for customers.
The report attributed the YoY progress to a mix of decrease financing prices, improved shopper sentiment, and the launch of recent automobile fashions and variants. “The YoY rise in automobile gross sales is pushed by lowered rates of interest, improved shopper confidence, and the introduction of newer variants and fashions,” the report acknowledged.
The MoM improve was primarily influenced by the “low base impact,” as December gross sales sometimes decline attributable to new-year registration delays, alongside the absence of SAZEW information throughout that interval.
For the seven months of the present monetary yr (7MFY25), whole auto gross sales surged to 77,686 models, marking a 55% improve in comparison with the identical interval within the earlier yr (49,989 models in 7MFY24).
The report highlighted that every one automakers noticed progress in each YoY and MoM gross sales. Moreover, gross sales of two and three-wheelers rose by 33% YoY and 18% MoM, totaling 139,161 models in January 2025, a 2.5-year excessive.
Nonetheless, the tractor business noticed a decline, with gross sales falling 28% YoY and 61% MoM to 2,761 models. In distinction, truck and bus gross sales recorded important progress, with a 2.57x YoY and three.22x MoM improve, reaching 621 models—the very best since January 2022.
In conclusion, the report forecasts continued progress within the automotive sector, pushed by the continuing restoration in auto financing, the easing of rates of interest, and the introduction of recent automobile fashions out there.