Car sales decline by 36.9% in FY2024

Passenger car sales plummeted to 54,089 units, marking a significant 36.9% decline during the initial nine months of fiscal year 2024 (July to March). This downturn can be attributed to various factors, including soaring inflation, diminished purchasing power, high interest rates, expensive auto financing, and rising car prices, as per data provided by the Pakistan Automotive Manufacturers Association (PAMA). Additionally, PAMA reported significant declines in truck and bus sales by 45.2% and 39% respectively. Sales of Jeeps and pick-ups also saw a decline of 40.3%, while two and three-wheeler sales (motorbikes and rickshaws) decreased by 9.9%. On a contrasting note, sales of tractors experienced a surge, marking a notable rise of 65.8% with 35,199 units sold during the nine-month period. Analysts and experts noted that while the uptick in tractor sales is a positive sign, the automotive industry as a whole continues to grapple with a crisis, despite the favourable terms of the International Monetary Fund (IMF) programme.