Karachi: The automotive industry in Pakistan is expected to see a 7% year-over-year increase in sales for the three major auto manufacturers in August 2024, totaling 6.9 thousand units. Despite the overall growth, Pak Suzuki Motor Company is anticipated to face a significant decrease in sales, marking an eight-month low with a 14% drop compared to the previous year.

According to JS Global, Indus Motors Ltd (INDU) and Honda Atlas Cars (HCAR) are set to report substantial growth, with increases of 70% and 38% respectively, countering the decline from Pak Suzuki. On a month-over-month basis, INDU and HCAR are also expected to continue their upward trajectory, posting volume growths of 28% and 23% respectively. Conversely, Pak Suzuki is projected to experience an 18% month-over-month decline, leading to an overall 2% decrease in sales for the three companies in August.

The anticipated recovery in auto volumes is attributed to the low base-effect from the previous year. Factors such as macro-economic stability, a stable exchange rate, and declining interest rates are expected to influence auto demand in the upcoming months, suggesting a cautious but positive outlook for the industry.