Karachi, May 13, 2025 — Luxury car sales in Pakistan have recorded a significant surge, reflecting a broader shift in consumer preferences and economic behavior.
According to the latest data released by the Pakistan Auto Manufacturers Association (PAMA), car sales in Pakistan with engine capacities of 1300 CC and above jumped by an impressive 47% during the first 10 months (July–April) of fiscal year 2024–25.
The figures show that 40,369 units of high-end vehicles were sold during this period, compared to 27,429 units in the same timeframe last year. This substantial increase in sales of premium vehicles indicates a growing appetite among consumers in Pakistan’s affluent class for luxury automobiles, despite economic challenges affecting lower-income groups.
In stark contrast, car sales in the 1000 CC category experienced a steep 36% decline, falling from 6,093 units to just 3,919 units during the same 10-month period. This drop highlights shrinking affordability and a decline in middle-class purchasing power in Pakistan.
Meanwhile, vehicles with engine capacities below 1000 CC saw a healthy rise in sales, with 38,981 units sold between July and April FY25, marking a 32% increase from 29,440 units in the corresponding period of FY24. These sales figures suggest that while some segments of Pakistan’s population are downgrading to more economical options, others are gravitating toward high-end models, creating a polarized automotive market.
The trend of rising luxury car sales has also prompted concerns regarding wealth concentration and potential tax evasion. The Federal Board of Revenue (FBR) is now being urged to intensify monitoring and verification of high-value car sales in Pakistan. It is mandatory for withholding agents and vehicle manufacturers to submit detailed buyer information — including CNIC or NTN — and collect applicable withholding taxes on all vehicle sales.
Under Section 165 of the Income Tax Ordinance, 2001, entities collecting or deducting tax must submit quarterly statements to the Commissioner of Inland Revenue. These statements must outline the identities of buyers, the amounts paid, taxes collected, and any other required particulars, ensuring that the growing sales of luxury vehicles in Pakistan are adequately taxed and documented.
In conclusion, the surge in luxury car sales highlights both economic divergence and the need for enhanced regulatory oversight to ensure transparency in Pakistan’s growing automotive market.