Karachi: Pakistan’s auto sector experienced a significant downturn in September 2024, with overall sales falling by 16% year-on-year to 11,692 units. The sharp decline was primarily due to an 80% drop in tractor sales, underscoring challenges within the agricultural sector. Despite the overall downturn, the Light Commercial Vehicles (LCVs) and Pickups segment showed resilience, recording a 32% increase in sales.

According to AKD Securities Limited, the smaller engine segment of passenger cars (800cc and below) performed notably well, with sales increasing by 35% to 3,761 units. However, sales of vehicles in the 800-1000cc range, including the Suzuki Cultus, plummeted by 65% to just 241 units. Among the major Original Equipment Manufacturers (OEMs), INDU and HCAR reported sales of 2,367 and 1,269 units, respectively.

The decline in agricultural activity has been identified as a major factor affecting the auto sector, suggesting a potentially prolonged recovery period. Despite the current challenges, INDU remains AKD’s preferred stock, with a target price of PKR 2,100 per share set for June 2025.