Karachi, March 11, 2025 – Pakistan has witnessed a remarkable 51% surge in car sales during the first eight months (July – February) of the current fiscal year 2024-25, indicating strong consumer demand and an improving economic environment.
According to data released by the Pakistan Auto Manufacturers Association (PAMA), total car sales in Pakistan during the first eight months of FY25 stood at 90,270 units, significantly higher than the 59,699 units recorded in the corresponding period of the previous fiscal year. This surge highlights the growing demand for vehicles across the country.
In February 2025, car sales in Pakistan reached 12,100 units (assuming SAZEW sold 1,695 units in January 2025), reflecting a 29% Month-on-Month (MoM) decline but a 24% Year-on-Year (YoY) increase. The cumulative car sales in Pakistan for the 8MFY25 period amounted to 90,300 units, showing a robust 51% YoY growth.
Analysts at Arif Habib Limited attributed the MoM decline in February 2025 car sales in Pakistan to two primary reasons: i) higher sales in January 2025, driven by the new-year buying effect, and ii) fewer days in February compared to January, leading to reduced transactions. However, the YoY increase was supported by declining interest rates, improved affordability of auto financing, lower inflation boosting consumer purchasing power, and the introduction of new car models in Pakistan.
Among individual manufacturers, Indus Motors Company Ltd (INDU) reported a 22% MoM decrease in sales for February 2025, totaling 2,611 units. The decline was primarily driven by a 33% MoM drop in Fortuner and Hilux sales to 791 units, while Corolla and Yaris sales fell 15% MoM to 1,820 units.
Honda Atlas Cars (HCAR) experienced a 7% MoM decline in sales, totaling 2,054 units. Sales of Honda BR-V/HR-V dropped 21% MoM to 178 units, while Civic/City sales decreased by 5% MoM to 1,876 units.
Pak Suzuki (PSMC) recorded a 33% MoM decline in car sales in Pakistan, with total units sold at 5,220. The steepest drop was seen in Bolan sales, which plummeted 93% MoM, while sales of Every declined 76% MoM. Other models such as Cultus, Swift, Ravi, Alto, and Wagon R also saw MoM declines of 41%, 39%, 39%, 29%, and 14%, respectively.
Sazgar Engineering Works Ltd (SAZEW) reported total sales of 877 Haval units in February 2025, following an estimated 1,695 units sold in January 2025.
Beyond car sales, two-wheeler sales in Pakistan fell by 7% MoM in February 2025. Atlas Honda (ATLH) reported sales of 108,169 units, reflecting a 6% MoM decline.
Additionally, tractor sales in Pakistan dropped by 44% MoM to 1,534 units in February 2025, mainly due to a 52% MoM decline in Millat Tractors Limited (MTL) sales, which totaled 1,124 units. However, Al-Ghazi Tractors Limited (AGTL) sales remained stable at 410 units. The overall decline in tractor sales was attributed to a high base effect and the previous month’s distribution of tractors under the Punjab government’s Green Tractor Scheme.
The surge in car sales in Pakistan indicates a positive shift in consumer sentiment, fueled by improved economic conditions and favorable financing options. Moving forward, industry experts will closely monitor interest rates, inflation trends, and policy measures that could further impact auto sales in the coming months.
