Pakistan Automobile Industries

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In the past year or so, companies have struggled greatly with import restrictions and inventory gaps forcing many to keep the factories shut down due to non-production. This dramatically affected sales.

While volumes have recovered following the easing of those restrictions, other economic challenges persist including the rising cost of living and erosion of purchasing power. Cars are not on the cards for many households as they make peace with their existing vehicles or relent to two-wheelers.

 

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Pakistan’s semi-trailer OEM AUTOCOM exports to East Africa​

Press Release

Pakistan-based original equipment manufacturer AUTOCOM has exported a sizable shipment of semi-trailers to East Africa, it announced in a press release on Thursday.

The trailers were manufactured at AUTOCOM’s purpose-built semi-trailer factory in Port Qasim and shipped in Completely Built Up (CBU) condition, it added.

“We understand the particularities and needs of fleet owners and demonstrate that we can fully serve them with robust products, with high technology and full availability of after-sales services,” said Danish Suleman, Head of Sales for AUTOCOM.

Danish said the semi-trailers exported to Africa underwent a detailed design review, tailored to meet the most severe application conditions for East Africa.

The trailers were twin axle 40’ flat beds with AUTOCOM ABS axles and fail-safe brakes. They were fitted with SLM ‘Supercargo’ tubeless tyres made in Pakistan at SLM’s export-oriented manufacturing plant.

Speaking on the occasion of the shipment, CEO of AUTOCOM, Kamran Khan said, “We are looking for a long-term partnership with our customers as this is part of what we call our ‘Rhino Culture’ at AUTOCOM. We want to ensure that we provide full support and training to the operators as well.”

AUTOCOM has previously exported fuel tank trailers and container trailers to Mauritius, Kenya and Sudan.

“Aiming to further expand the presence of AUTOCOM equipment in Africa’s major markets, the company intends to have representation in two key countries of East Africa,” the press release added.

“Since it was founded in 1970, AUTOCOM has been relying on innovation for steady and consistent growth in the road transport segment. In the last two years, the company has ventured into the mining segment having developed specialised trucks for this sector.”

 

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Belarus to Supply Thousands of Tractors to Pakistan Next Year​

By Saqib
Dec 2, 2024

The Minsk Tractor Plant (MTZ) has announced plans to supply at least 2,700 Belarus tractors, each with up to 60 hp, to Pakistan in 2025.

This agreement was formalized during Belarusian President Aleksandr Lukashenko’s visit to Pakistan, as shared by the enterprise’s press service.

MTZ General Director Sergei Avramenko highlighted the possibility of assembling these tractors in Pakistan. The local assembly is expected to lower costs for consumers and enhance accessibility.

Avramenko noted the strong and growing partnership between Minsk Tractor Works and Pakistan. The export of BELARUS tractors saw a significant increase of 107.9% from January to September 2024 compared to the same period in the previous year.

 

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Punjab Cracks Down on Polluting Vehicles With New Regulations

By Saqib
Dec 2, 2024

The Punjab government has announced stricter measures to combat air pollution and improve air quality in the province, especially in Lahore.

Senior Minister Maryam Aurangzeb revealed that route permits for vehicles with faulty engines and excessive smoke emissions will be revoked. Additionally, a ban will be enforced on the entry of heavy vehicles, including trucks and buses, into Lahore on Fridays and Sundays.

In a recent inspection campaign, over 1,000 vehicles emitting excessive smoke and malfunctioning engines were checked, resulting in 144 vehicles being shut down. This move is part of the province’s efforts to reduce pollution and improve the environment for its citizens.

 

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Punjab Govt Announces New Rule: No M-Tag Without Fitness Certificate​

Dec 2, 2024

The Punjab government has introduced new measures to combat smog, focusing on stricter vehicle regulations. One key decision is to not issue M-tags to vehicles that lack a valid fitness certificate.

This new rule is part of the government’s ongoing efforts to tackle air pollution. Vehicle owners will now be required to show a fitness certificate, along with their registration book and license when applying for an M-tag.

Additionally, vehicles over 30 years old will be banned from entering Lahore from October to January. These older vehicles will also be prohibited from traveling on motorways during this period.

Provincial Transport Minister Bilal Akbar Khan stated that these measures are necessary due to the severe smog conditions in the region. The rules will initially apply to government vehicles.

 

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Ghandhara Tyre partners with China’s Shandong Huasheng to explore JV in Pakistan​

BR Web Desk
December 10, 2024

Ghandhara Tyre and Rubber Company Limited (GTYR) has announced its collaboration with Shandong Huasheng Rubber Co., Ltd. (SHRC), a prominent Chinese technology service provider, to explore the establishment of a joint venture in Pakistan.

The listed company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“Ghandhara Tyre and Rubber Company Limited (formerly The General Tyre and Rubber Company of Pakistan Limited) has entered into a non-binding Memorandum of Understanding (MoU) with Shandong Huasheng Rubber Co., Ltd. (SHRC), which is a leading technology service provider in the tyre industry based in the People’s Republic of China,” read the notice.

GTYR and SHRC plan to explore the possibility of setting up a joint venture company in Pakistan for inter alia, manufacture, sale, marketing and supply of truck bus radial and passenger car radial tyres, focusing on export markets, the company informed.

“The setting up of the joint venture company is subject to satisfactory feasibility studies, internal and regulatory approvals and execution of definitive agreements,” it added.

Incorporated in Pakistan on March 7, 1963 as a private limited company, under the Companies Act, GTYR is engaged in the manufacturing and trading of tyres and tubes for automobiles and motorcycles.

Meanwhile, Shandong Huasheng Rubber Group, founded in 1983 in Dongying city, has grown steadily with a compound annual growth rate of 18% for more than 30 years. The company has developed into an international global top-tier modern enterprise with assets of more than 5 billion yuan.

 

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Month-on-month: car sales in Pakistan down 22% in November due to year-end effect​

BR Web Desk
Car sales in Pakistan fell by 22% month-on-month (MoM) in November 2024, totaling 10,163 units, stated a report by brokerage house Topline Securities on Tuesday. However, on a year-on-year (YoY) basis, sales surged 57%, reflecting a significant rebound in demand compared to the same month of the previous year.

This brought sales for the first five months of FY25 (5MFY25) to 50,856 units, a 51% YoY increase from 33,637 units in 5MFY24.

“The MoM decline is mainly due to the end-of-year effect, as buyers delay deliveries or purchases to secure new-year registrations,” noted Myesha Sohail, an auto sector analyst at Topline.

Among automakers, Sazgar Engineering (SAZEW) reported the sharpest MoM drop of 42%, with sales falling to 584 units in November. Its production remained stable, declining only 1% MoM to 993 units.

Indus Motor Company (INDU) recorded a 13% MoM decline in sales, delivering 2,194 units in November. Despite the monthly dip, its YoY sales rose 129%, led by a surge in Toyota vehicle demand.

Pakistan Suzuki Motor Company (PSMC), the market leader, sold 5,374 units in November, reflecting a 53% YoY increase but a 26% MoM decline. Honda Atlas Cars (HCAR) also experienced a 27% MoM drop, with sales totaling 1,112 units, though its YoY sales grew by 10%.

Hyundai Nishat Motors bucked the trend, reporting an 11% YoY and 21% MoM rise in sales to 724 units, driven by a 45% jump in Tucson sales.

In a notable instance during the month, Dewan Farooque Motors (DFML) made headlines by selling 63 units of the newly launched locally assembled electric vehicle, Honri.

In other segments, two- and three-wheeler sales rose 36% YoY but fell 12% MoM to 120,484 units.

Tractor sales reached 3,428 units in November, down 2% YoY but up 98% MoM, supported by the withdrawal of SRO 563(1)/2022. Al Ghazi Tractors (AGTL) led the segment with 2,012 units, marking a staggering 584% MoM rise, while Millat Tractors (MTL) sold 1,416 units, down 2% MoM.

Truck and bus sales climbed 126% YoY but slipped 7% MoM to 328 units in November.

Looking ahead, Sohail expects a sales recovery in January 2025, driven by improved auto financing amid declining interest rates and deferred buying in the last months of 2024. However, December is likely to witness a further MoM decline due to the year-end effect.

 

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In response to the increasing trade with regional countries, National Logistics Corporation (NLC) has significantly enhanced its fleet with the procurement of 500 modern, high-powered trucks.

These advanced vehicles are designed for long-haul operations. Prime Movers brought in Pakistan by road through Khunjerab Pass by saving lot of time and expenditure as compared to sea transportation.

The introduction of these trucks is a strategic move to strengthen “Regional Connectivity” under the TIR (The International Road Transport). This initiative was taken by NLC with the launch of first commercial operation in 2021.

Since then, NLC has progressively extended land-based transportation operation to Central Asian Republics, China, Russia, Turkiye, Azerbaijan & beyond while plans are afoot to expand NLC’s outreach to other countries in Eastern Europe.

Powered by advanced technology and delivering 390 horsepower, these trucks are equipped to handle the demanding requirements of long-distance transportation and will be utilized for the transportation of goods via road to various destinations.

The addition of these state-of-the-art trucks to NLC's fleet will enhance its cross-border logistics capabilities, contributing to the growth of regional trade & connectivity

 

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Cars’ sale up 49.66pc to 38,534 units in Jul-Nov​

The Nation
Dec 15, 2024

The sale of cars during the first five months of the current financial year 2024-25 increased by 49.66 percent compared to the same months of last year, recent data released by Pakistan Automobile Manufacturing Association (PAMA) showed.

According to the data, as many as 38,534 cars were sold during the months under review as opposed to 25,746 units in the same months of last year.

5,434 units of Honda Civic and City were sold during July-November 2024-25 compared to the sale of 3,151 units during July-November 2023-24. Toyota Corolla and Yaris cars sales increased by 79.40 percent as it went up to 8,477 units from 4,725 units in the previous year.

Suzuki Swift’s sales also rose by 57.45 percent as its sales surged from 1,852 units to 2,916 units this year.

Sales of Suzuki Cultus declined to 808 units during the first five months of the current year, whereas during the same months last year, the sale was recorded at 1,611 units while the sale of Suzuki WagonR also decreased to 939 units from 1,420 units last year.

Suzuki Alto’s sales witnessed an increase of 36.90 percent from 11,306 units to 15,479 units during the current year, whereas the sales of Suzuki Bolan surged to 2,896 units as opposed to sales of 853 units in the same months of last year.

 

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Honda, Nissan move to deepen ties, sources say, including possible merger​

TOKYO: Honda and Nissan are in talks to deepen ties, two people said on Wednesday, including a possible merger,

 

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SUVs take the spotlight as Pakistan car sales soar 69% YoY in December​

Salman Siddiqui
January 14, 2025

Car sales in Pakistan surged 69% to 9,820 units in December 2024 as compared to the same month of the last year, showed data released by the Pakistan Automotive Manufacturers Association (PAMA) on Tuesday.

This took the first half (Jul-Dec) of FY25 sales to 60,676 units, a rise of 54% as compared to 39,453 units in the same half of FY24.

SUVs (sport utility vehicles) and LCVs (light commercial vehicles) sales soared 148% to 2,236 units in December as compared to 900 units in the same month of last year.

The SUVs dominated the growth trend in the first six months (Jul-Dec) of current fiscal year 2024-25 in line with the global shift towards the crossover from high-end passenger cars as compared to the same half of the last year.

SUVs and LCVs sales were up 91% year-on-year in the first half of FY25.

The industry sold 16,775 units of SUVs and LCVs during July-December FY25 as compared to 8,792 units in the same half of the last year. Accordingly, their share surged to around 30% in total sales in the half-year under review as compared to 22% in the same half of the last year.

“The growth in SUV sales is in line with the global shift towards the SUVs, as they are available in the same price range in which high-end sedans are available,” Hamdan Ahmed, auto sector analyst at Optimus Capital Management, told Business Recorder.

“The jump in SUV sales (in Pakistan) is led by Toyota Corolla Cross and Sazgar Haval in the six months,” he said, adding the shift towards the crossover began in Pakistan in 2018.

Hyundai, Changan, and KIA were among major players in the segment in the country at present.

Tahir Abbas, Director Equity at Arif Habib Limited, said the launch of new SUV models played a key role in inviting the notable demand in the segment.

“The growth is well supported by a significant cut in the interest rate which helped reviving the vehicle sales on bank financing,” Abbas said.

He projected that the SUV segment would continue to dominate the vehicle sales with Hyundai, Honda and KIA set to launch new models of the crossover in the just started second half (Jan-Jun) of FY25. The stability in price, bank leasing and cut in the interest rate would continue to support growth in car sales, going forward, according to Abbas.

However, on month-on-month basis, car sales in Pakistan dropped 3% in December 2024 as compared to November 2024.

“The month-on-month decline can primarily be attributed to the end-of-year effect, with buyers postponing deliveries or purchases to obtain new year registrations,” Myesha Sohail, analyst at Topline Research, said.

The year-on-year rise in car sales was driven by lowered interest rates, improved consumer confidence, and launch of newer variants and models, she added.

 

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Auto sales surge 50pc in July-February​

Aamir Shafaat Khan
March 12, 2025

KARACHI: Auto sales — cars, pickups, vans and light commercial vehicles — clocked in at 12,084 units in February, reflecting a 24 per cent year-on-year rise and a 29pc month-on-month fall.

The month-on-month decrease is primarily due to the high base effect as buyers delay purchases from December to January to secure new-year registrations, and the Sazgar Engineering Works Company released its sales data for the two months late.

Myesha Sohail of Topline Securities said the year-on-year rise in car sales is driven by lowered interest rates, improved consumer confidence, and the introduction of newer variants and models.

Sales surged by 50pc to 89,770 units in 8MFY25 from 59,700 units a year ago, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).

She said that KIA Lucky Motors sales for February were around 850 units among non-PAMA members.

Sazgar Engineering’s February sales stood at 883 units, up by 113pc year-on-year but fell by 56pc month-on-month. The January numbers included cumulative sales for December 2024 and January, creating an anomaly and a high uptick for the company. The 8MFY25 sales rose to 7,084 units, marking a 166pc increase from 2,667 units in 8MFY24.