KARACHI: Car sales in Pakistan surged by 62% year-on-year (YoY) and 27% month-on-month (MoM) in August 2025 amid improving consumer sentiment and availability of bank financing.
In August 2025, car sales (including LCVs, vans, and jeeps) stood at 14,050 units, against 8,699 units in August 2024 and 11,034 units in July 2025, according to Pakistan Automotive Manufacturers Association (PAMA) data.
The PAMA’s report for August 2025 also revealed a 140% YoY increase in the truck sales to 596 units from 249 units recorded in August 2024.
The sales of two and three-wheelers, including motorbikes and rickshaws, climbed by 42% to 148,063 units.
However, tractor sales decreased by 63% to 996 units in August 2025 from 2,670 units recorded in the same month last year.
Speaking about rising car sales, auto sector analyst Muhammad Sabir Shaikh said businesses of the country were growing and buying power of people had also improved recently, with both commercial and Islamic banks launching a host of leasing schemes for car enthusiasts.
He further said used imported cars would be available in coming months, and their availability would increase competition in the auto sector.
Regarding a decline in the tractor sales, Shaikh said Pakistan farmers were “distraught” for around three years for poor crop yield, higher input costs, and less output prices.
“They [farmers] are unable to purchase new tractors or unwilling to make new investments in the agriculture sector.”
Another expert Mashood Khan said car sales in Pakistan had picked up a momentum during the first two months of the fiscal year.
In 2MFY26, car sales stood at 25,093 units, a 45% YoY rise from 17,288 units in 2MFY25.
“This augurs well that the local auto industry is gaining slowly but a single negative decision of the government can take the industry back two or three years,” he warned.
“The government must support the local auto industry and parts manufacturers with a view to raising it in comparison with the used cars. Earning rests on the survival of the local industry.”
