Karachi: The automotive sector reported a significant increase in sales this July, with industry volumes reaching 10,300 units, marking a 30% year-on-year rise. This growth, primarily driven by the low sales base of the previous year due to supply chain issues, saw major gains in passenger cars and light commercial vehicles.

According to AKD Securities Limited, the standout performers were Honda Civic and City models from HCAR, which surged to 790 units compared to just 208 units in the same period last year. Conversely, tractor sales saw a decline, with 1,460 units sold versus 2,678 units previously, attributed to higher prices and new sales taxes.

Toyota’s INDU reported a 22% annual increase in sales, with a notable 85% surge in Fortuner and IMV models. Despite this, the Corolla and Yaris models experienced only a modest 4% growth. HCAR also marked an 88% increase in total sales, although its BR-V and HR-V models saw a significant sales drop of 51%.

SAZEW and PSMC also reported substantial growth, with SAZEW’s sales primarily driven by its HAVAL models and PSMC experiencing an 83% increase due to strong performances across its Swift, Alto, Bolan, and Ravi models.

The report highlights that while the recovery in volume is a positive sign, sales remain below the peak levels seen in FY18/19, largely due to high vehicle prices. Looking forward, AKD Securities forecasts a 10% increase in passenger car and LCV sales for FY25, contingent on stable car prices and potential monetary easing to boost auto financing.