Pakistan car sales surged 28% on year-on-year (YoY) basis in July 2025, rising to 11,034 units apparently due to launch of a number of new models in recent months and availability of car financing at affordable interest rate.
Car sales had stood at 8,589 units a year ago in July 2024, according to Pakistan Automobile Manufacturers Association (PAMA) data.
“The year-on-year growth is due to a more stable macroeconomic environment with lower interest rates and easing inflation which has improved consumer sentiment,” Topline Research’s analyst Myesha Sohail said in a commentary.
Sohail added, “we expect the momentum in auto sales to continue in FY26, supported by lower interest rates and a strong pipeline of new model launches across various engine types, including hybrid and plug-in hybrid”.
Car sales in Pakistan jump 43% in fiscal year 2024-25
The July sales, however, declined 49% month-on-month (MoM) basis which is “mainly attributed to the high base effect from Jun’25, when sales spiked due to a surge in pre-buying ahead of the increase in vehicle taxes, namely the imposition of the electric vehicle (EV) adoption levy and the increase in sales tax (ST) on 850cc vehicles from 12.5% to 18% under the FY26 federal budget,” AHL Research’s analyst Menka Kirpalani said in another commentary.
Company wise sales
Indus Motor Company (INDU) recorded a two-fold year-on-year increase in sales to 3,337 units.
The growth was led by a 17% MoM rise in the ‘Fortuner and IMVs’ segment, while demand for Corolla, Yaris, and Cross also remained robust, according to Topline.
Hyundai Nishat’s sales grew 2.1-time YoY to 1,225 units.
“The Hyundai Porter was the only model to post MoM growth, rising 31%, while the Tucson and Elantra recorded 5-time and 4-time YoY increases, respectively.”
Sazgar Engineering (SAZEW) sales rose 31% on YoY basis in the month under review.
“The increase in sales was supported by clarity from the company that budget had no impact on its flagship car Haval prices. Sales were also supported by the launch of the new HAVAL facelift, with further growth expected from August onwards following the introduction of the H6 PHEV variant,” Topline commentary read.
Honda Atlas Cars (HCAR) recorded a 61% YoY increase to 1,500 units in July 2025. Pak Suzuki Motor Company (PSMC), however, posted an 18% YoY decline.
Two-three wheelers sales
Two and three wheeler sales rose 44% YoY in July 2025, rising to 122,441 units. Electric motorcycles and three-wheelers, newly added to the data, accounted for 542 units of the total. “Road Prince figures are still awaited and could add 2,000 units to the total.”
The total tractor industry recorded sales of 1,195 units, down 18% YoY and 57% MoM. “Tractor sales fell on year-on-year basis due to weak farm economics, in our view,” Sohail said.
Truck and bus sales in July 2025 were up 22% YoY while down 49% MoM, reaching 374 units.
