- Cars, trucks, buses, and jeeps see major boost; IMC records 47pc production growth last year
According to the car sales statistics announced through the Pakistan Automotive Manufacturers Association (PAMA) presently, sales of trucks and buses surged by 82 per cent to 1,074 units and by 66.4 per cent to 203 units respectively. Sales of jeeps and pick-ups went up by 60 per cent to 10,068 units, while two and three-wheeler sales increased by 23.4 per cent to 457,880 units as usual. However, once again, tractor sales declined prey to a significant fall by 59.9 per cent, to 6,939 units, despite the country’s diverse agrarian economy in rural regions. It is said that sales of passenger cars, trucks, buses, jeeps and motorcycles are going up during the last four months of the fiscal year except for the farm tractors.
Overall state of the auto industry is enhancing owing to the fact that the State Bank of Pakistan (SBP) has gradually reduced interest rates, which has boosted confidence among customers and investors. Car leasing is expected to regain some traction in the market. Some Original Equipment Manufacturers (OEMs) have launched interest-free financing, attracting customers, and this measure is already explaining promising consequences.
The local market is poised to enlarge significantly, as there is ample room for improvement. Researchers said that about the car sales that this rise is mainly driven by enhanced auto financing and a general sense of optimism and stability in the market. Auto sales are expected to rise further as interest rates fall and new models, mainly hybrid electric vehicles (HEVs) and EVs enter the market. Truly speaking in Pakistan the Indus Motor Company (IMC) a symbol of quality, reliability and durability, has made large-scale investments in improving its own capacity and in meeting customer requirements for new products.
According to the financial report of Indus Motor Company (IMC), the company’s Earnings Per Share (EPS) for the quarter reached Rs. 64.77 as against Rs. 40.91 in the corresponding period last year. The management of IMC declared a first interim cash dividend of Rs. 39 per share for the quarter, compared to Rs. 24.5 per share in the corresponding quarter last year.
Presently our country’s economic indicators are showing positive sign during FY2025 and recent economic gains, driven by strategic fiscal policies, robust remittances, and stable exports, signal a promising foundation for sustained growth and investor confidence. As recorded in the State Bank of Pakistan (SBP)’s Annual Report for 2023-24, the current account deficit (CAD) reached a 13-year low, falling by a significant 79 per cent from the previous fiscal year, from $3.275 billion in FY2023 to $681 million in FY2024.
This improvement reflects the success of Pakistan’s strategies and worldwide demand trends, positioning the economy for sustained growth. The favourable environment has stabilised the economy and boosted the overall economic sentiment. SBP report shows the optimistic effects of a tight monetary policy, which has assisted in controlling inflation and stabilise prices.
The economists anticipated an optimistic viewpoint, forecasting a 3.4 per cent GDP growth rate for FY2025. No doubt, IMC has played a major role in the development of the entire value chain of the local auto industry. It is also proud to have contributed to poverty alleviation at the grassroots level by nurturing localisation.
This, in turn, has directly created thousands of career opportunities and transferred technology to 53 vendors supplying parts. IMC is also a major taxpayer and a significant contributor to the Government’s exchequer. Company’s sales of Completely Knocked Down (CKD) and Completely Built-up (CBU) vehicles for the quarter closed September 30, 2024, grew by 37 per cent to 6,292 units, as against 4,583 units in the corresponding period last year.
IMC’s market share in the overall market, based on PAMA statistics, reached about 23 per cent. Indus Motor produced 6,801 vehicles during the quarter, reflecting a 47 per cent raise as against 4,614 units in the corresponding quarter the previous year. This growth was driven by a slight recovery in demand and the successful launch of the Toyota Yaris with minor model changes. This model has further enhanced their product portfolio to meet evolving customer preferences.
The company’s net sales turnover for the quarter grew to Rs. 41,603 million, up from Rs. 32,671 million in the corresponding quarter previous year. Profit after tax rose to Rs. 5,091 million, as against Rs. 3,216 million during the corresponding period previous year. This improvement in profitability was chiefly driven by reduced import material costs, favourable exchange rate movements, ongoing cost reduction measures, and increased localisation.