Auto Sales Expected to Dip in March 2024 After February Surge

Karachi, Following an impressive year-on-year growth in February 2024, the automobile industry is set to face a decline in sales for March 2024, with the three major listed auto companies anticipated to report a collective 3% decrease in sales, totaling around 8.09 thousand units.

According to JS Global, Honda Car Africa (HCAR) is predicted to show a significant sales increase due to a low-base effect from plant shutdowns in March 2023 and recent price reductions in March 2024. In contrast, Pak Suzuki Motor Company (PSMC) is expected to see a substantial decrease in sales, with forecasts indicating a 25% and 11% year-on-year decline.

The first quarter of calendar year 2024 (1QCY24) is likely to exhibit a 14% year-on-year sales increase, primarily attributed to the low-base effect following the plant shutdowns in 1QCY23. However, this figure represents a 62% drop compared to the first quarter of calendar year 2022 (1QCY22), highlighting the volatility in the auto sales market.

JS Global notes that despite the current fluctuations, the foundation for sustained demand growth in the automobile sector is not yet solidified. Expectations for the fiscal year 2025 include a potential increase in auto demand, contingent on a pickup in economic activities and reductions in inflation and interest rates, which are crucial for revitalizing the auto market.