Pakistan sees 40% rise in car sales in first 10 months of FY2025-26

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.

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.