KARACHI: Pakistan’s car sales declined 5 percent month-on-month but managed a slight one percent year-on-year increase, supported by a stable macroeconomic environment, lower interest rates, easing inflation, and improving consumer sentiment.
The statistics released by the Pakistan Automotive Manufacturers Association (PAMA) revealed that car sales reached 10,596 units in April 2025, posting a marginal one percent year-on-year increase but declining five percent month-on-month. The monthly drop was largely due to highway closures in Sindh, which caused delivery delays and impacted sales.
According to Topline Research, on the other hand, yearly sales growth is supported by a more stable macroeconomic environment, lower interest rates, easing inflation, and improving consumer sentiment. Moreover, the new model launches and variant introductions played an important role in attracting demand.
Pakistan car sales fall 8% MoM in March 2025
Compiled data said that the total sales in the first ten months of last fiscal year (10MFY25) surged to 111,464 units which is a 40 percent higher than the previous year that was 79,596 units in the first ten months of the last year (FY24).
According to PAMA’s data, Sazgar Engineering (SAZEW) experienced the largest monthly sales drop, plummeting 42 percent to 549 units in April 2025. However, on a cumulative basis, the company saw a 130 percent year-over-year surge in sales to 8,576 units in the first ten months of the fiscal year, driven by the popularity of the Haval brand in Pakistan.
In contrast, Pak Suzuki Motor Company (PSMC) sales dropped 12 percent month-over-month and 33 percent year-over-year to 4,003 units in April 2025. Meanwhile, Honda Atlas Cars (HCAR) achieved significant growth, rising 20 percent month-over-month and 70 percent year-over-year to 1,707 units.
Indus Motor Company (INDU) sales rose 58 percent year-over-year and 4 percent month-over-month, while Hyundai Nishat increased 9 percent year-over-year but fell 5 percent month-over-month.
The 2- and 3-wheeler segment saw significant growth, with sales surging 26 percent year-over-year and 6 percent month-over-month to 135,721 units in April 2025, driven by improved purchasing power amid lower inflation. This pushed 10MFY25 sales to 1.2 million units, a 30 percent year-over-year rise.
In contrast, tractor sales plummeted 48 percent year-over-year to 1,602 units due to weak farm economics. On a more positive note, truck and bus sales jumped 127 percent year-over-year and 13 percent month-over-month to 520 units, taking 10MFY25 sales to 3,885 units, an 85 percent rise from 2,098 units in the first ten months of last fiscal year (FY24).
Analysts noted that looking ahead, the auto sector is expected to maintain its momentum, supported by interest rate cuts, a stable rupee, and new model launches, following a strong rebound in the current fiscal year.
Copyright Business Recorder, 2025
