Karachi, July 10, 2025 – Car sales in Pakistan recorded a robust recovery in fiscal year 2024-25, with total volumes rising by an impressive 43% year-on-year.
According to data released by Topline Securities, citing figures from the Pakistan Automotive Manufacturers Association (PAMA), car sales in Pakistan reached 148,023 units during FY25, up from 103,829 units in FY24.
This surge in car sales is attributed to improving macroeconomic stability, reduced interest rates, better consumer sentiment, and the introduction of new car variants in the Pakistani market. In June 2025 alone, car sales jumped to 21,773 units, marking a 64% year-on-year (YoY) and 47% month-on-month (MoM) increase.
One of the primary drivers of June’s sales boost was the spike in demand for Suzuki Alto, which reached a 39-month high due to pre-buying ahead of the General Sales Tax (GST) hike from 12.5% to 18%, effective July 1, 2025. Pakistan’s car industry saw significant contributions from Pak Suzuki Motor Company (PSMC), which posted a 2.4x MoM increase, selling 9,497 Altos and 523 Cultus units, making it the biggest contributor to overall car sales during the month.
Sazgar Engineering Works (SAZEW) also reported a strong performance with 1,349 car units sold in June, reflecting a 47% MoM and 55% YoY growth. The company’s annual car sales doubled in FY25, reaching 10,844 units from 5,374 in FY24, largely supported by the launch of the new HAVAL facelift.
Indus Motor Company (INDU) posted mixed results, with a 25% YoY increase but a 24% MoM decline to 3,687 units in June 2025. Meanwhile, Honda Atlas Cars (HCAR) sold 1,808 units, up 65% YoY but down 10% MoM.
Overall, Pakistan’s broader automobile sector saw growth beyond just car sales. Two- and three-wheeler sales rose by 54% YoY to 1.5 million units during FY25. Truck and bus sales doubled to 5,232 units, while tractor sales declined by 32% YoY to 2,791 units in June.
Analysts forecast that car sales in Pakistan will maintain upward momentum in FY26, supported by easing interest rates and new vehicle launches including hybrid and plug-in hybrid models.