Sales of cars, SUVs, pickups, and vans in July 2024 stood at 8,589 units, reflecting a 60% year-on-year increase but a 36% month-on-month decline.

The decline in car sales in July can be primarily attributed to the increase in withholding tax rates introduced in the FY25 budget, which triggered pre-buying in the last month of FY24, leading to an 18-month high in June sales.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA), Toyota Corolla, Yaris, and Corolla Cross sales soared to 1,106 units in July 2024 from 1,067 units in July 2023. Toyota Fortuner and Revo sales also surged to 558 from 301 units in the above period. However, Indus Motor Company’s total sales were 44% lower month-on-month in July 2024.

Honda Civic and City sales swelled to 790 from 208 in July 2023, while Honda BRV and HRV sales plunged to 141 in July 2024 from 286 in July 2023. Honda Atlas’s total July sales were down by 15% month-on-month.

Suzuki Swift sales grew to 502 units in July 2024 from 249 in July 2023 while Suzuki Cultus and Wagon R sales slowed to 96 and 139 units from 177 and 245 units in July 2023. Suzuki Alto, Bolan and Ravi sales increased to 2,869, 288 and 576 from 1,440, 146 and 187 units in July 2023.

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Hyundai’s sales also saw some changes, with Elantra, Sonata and Tucson sales shrinking to 33, 34 and 113 units in July 2024 from 80, 90 and 328 units in July 2023. However, Hyundai Porter sales increased to 349 from 71 units. Sazgar Haval sales remained robust, with 824 units compared to 122 in July 2023.

Myesha Sohail of Topline Securities attributed the year-on-year rise in car, SUV, pickups and van sales in July to the low base effect of the industry, which resulted from plant closures and a shortage of inventory in the previous year.

In the tractor segment, Millat Tractors Ltd (MTL) saw sales of 605 units, down 63% year-on-year and 78% month-on-month, while Al-Ghazi Tractors Ltd (AGTL) recorded sales of 855 units, down 16% year-on-year and 40% month-on-month in July. This drop in tractor sales was attributed to pre-buying in June, before the government imposed a 10% general sales tax (GST) on tractor sales.

The sales of two- and three-wheelers fell by 5% month-on-month but increased by 15% year-on-year, totalling 84,993 units in July.

Truck and bus sales were up 3% month-on-month and 57% year-on-year, reaching 307 units in July.