Pakistan’s auto industry saw a strong revival in FY25, with passenger car sales rising 43% year-on-year to 148,023 units from 103,829 units in the previous fiscal year, marking the first meaningful recovery after prolonged market stagnation.
Industry experts credit the rebound to improved macroeconomic conditions, lower interest rates, and fresh model launches that renewed consumer confidence, according to figures released by the Pakistan Automotive Manufacturers Association (PAMA).
June 2025 capped the year with remarkable numbers: monthly car sales reached 21,773 units—the highest in three years—reflecting a 47% month-on-month surge and a 64% jump over the same month last year. Analysts noted this spike was fueled by strong pre-buying ahead of a proposed GST increase on vehicles up to 850cc, set to rise from 12.5% to 18% starting July 1, 2025.
Demand for small cars, especially the Suzuki Alto, led the charge, with Alto sales hitting a 39-month high of 9,497 units. This contributed to a 139% MoM rise in Pak Suzuki Motor Company’s overall sales to 13,217 units. Cultus and Swift models also performed impressively, rising 108% and 125% MoM, while Wagon R declined by 32%.
Sazgar Engineering Works Ltd posted June sales of 1,349 units, up 47% MoM, supported by the facelifted Haval series. Its full-year sales doubled to 10,844 units. Indus Motor Company’s June sales dipped 24% MoM to 3,687 units but still recorded a 25% YoY rise for FY25. Honda Atlas saw a 10% monthly drop in June but achieved a 65% YoY increase over the year.
Motorcycle and three-wheeler sales climbed 32% YoY in FY25 to 1.5 million units, while the tractor segment fell 32% YoY despite a June rebound. Truck and bus volumes nearly doubled to 5,232 units in FY25, showing renewed commercial demand.
Looking ahead, analysts expect momentum to continue in FY26, driven by lower interest rates and the anticipated launch of hybrid and plug-in hybrid models.
