KARACHI: A staggering 40 per cent rise in car sales has been recorded in the first 10 months of fiscal year 2025 (10MFY25), with total units reaching 111,464 — up from 79,596 units in the same period last year — according to data released by the Pakistan Automotive Manufacturers Association (PAMA).
The year-on-year (YoY) growth has been attributed to a relatively stable macroeconomic environment, lower interest rates, easing inflation, and improved consumer sentiment. Additionally, new model launches and variant introductions played a key role in driving demand, according to research by Topline Securities Ltd.
On a monthly basis, car sales in April 2025 stood at 10,596 units — reflecting a 1 per cent year-on-year rise but a 5 per cent month-on-month (MoM) decline. The MoM drop was primarily due to highway closures in Sindh that delayed deliveries and subsequently lowered sales.
Company-wise performance
Sazgar Engineering Works Ltd (SAZEW) saw the sharpest MoM decline of 42 per cent, with sales at 549 units in April 2025 — flat on a YoY basis. The drop was attributed to a 10-day strike that disrupted production, according to channel checks. However, cumulative 10MFY25 sales surged by 130 per cent YoY to 8,576 units, compared to 3,723 units in 10MFY24, owing to the growing popularity of the Haval brand in Pakistan, Topline Securities noted.
Pak Suzuki Motor Company (PSMC) reported a 12 per cent MoM and 33 per cent YoY decline in sales, which fell to 4,003 units in April 2025. Meanwhile, Honda Atlas Cars (HCAR) recorded the highest MoM and YoY increase — 20 per cent and 70 per cent respectively — with sales reaching 1,707 units.
Indus Motor Company (INDU) posted a 58 per cent YoY and 4 per cent MoM rise, while Hyundai Nishat Motor saw a 9 per cent YoY increase but a 5 per cent MoM decline.
Two- and three-wheeler segment
Sales in the two- and three-wheeler category rose by 26 per cent YoY and 6 per cent MoM, totalling 135,721 units in April 2025. The increase is attributed to improved public purchasing power amid lower inflation. This takes 10MFY25 sales in the segment to 1.2 million units — a 30 per cent YoY rise, according to Topline Securities.
Other segments
The total tractor industry recorded sales of 1,602 units in April 2025 — a 48 per cent YoY drop and a 4 per cent MoM decline. The fall in tractor sales was mainly due to weak farm economics, Topline believes.
Truck and bus sales rose by 127 per cent YoY and 13 per cent MoM to 520 units in April 2025. This takes 10MFY25 sales to 3,885 units — up 85 per cent from 2,098 units in the same period last year.
Outlook
Topline Securities expects the recovery in auto sales to continue, driven by interest rate cuts, a stable rupee, and fresh model launches.
