Karachi: Pakistan's automotive sector recorded a significant slump, with passenger car sales dropping to the lowest in 15 years. Total industry sales for the fiscal year 2024 fell by 6%, reaching 151,983 units, despite a modest recovery in June.

According to AKD Securities Limited, the industry faced continuous challenges throughout the fiscal year, impacted by supply chain disruptions and previous plant shutdowns, which hindered recovery from a low base effect. INDU saw a steep decline with a 33% year-on-year drop in sales, totaling 31,104 units. In contrast, SAZEW’s 4-wheeler segment reported a substantial increase, with sales tripling year-on-year to 5,374 units.

June 2024 marked a positive note for the industry with a 24% monthly increase in total sales, reaching 17,717 units. This improvement was significantly supported by the passenger car segment, which more than doubled its sales year-on-year and saw a 19% month-on-month growth. Despite these gains, the sector is expected to need more time to achieve full recovery. AKD Securities highlights INDU as their top pick with a June 2025 target price of PkR2,100 per share.