Karachi, September 11, 2025 – Pakistan’s automobile industry has started the new fiscal year on a strong note, with car sales rising sharply.
According to fresh statistics released by the Pakistan Auto Manufacturers Association (PAMA), sales of passenger cars surged by 40% during the first two months (July–August) of FY2025-26, compared to the same period last year.
The data shows that total car sales reached 17,127 units in the two-month period, up from 12,274 units recorded in the corresponding months of FY2024-25. August 2025 proved particularly strong, with car sales increasing by 41% month-on-month to 10,016 units, compared with 7,111 units in July 2025. On a year-on-year basis, the figure was even more impressive when compared with 6,417 units in August 2024.
Market experts at Arif Habib Limited attributed the August rebound to a low-base effect, as July sales had dropped following a wave of pre-buying in June ahead of new vehicle taxes. They added that improved consumer sentiment, lower interest rates, declining inflation, and the launch of new car models, including the Haval PHEV and HR-V Hybrid, played a critical role in lifting overall demand.
Breaking down performance by category, sales of cars with an engine capacity of 1,300cc and above rose by 15% month-on-month to 4,928 units. The 1,000cc segment saw a remarkable 97% increase to 519 units, while below 1,000cc cars recorded a 79% jump, totaling 4,569 units.
Company-wise data also reflects this upward momentum. Indus Motor Company Ltd (INDU) reported a modest 2% rise in volumetric sales, delivering 3,400 units. This was mainly driven by improved sales of Corolla, Yaris, and Corolla Cross models, while Fortuner and Hilux showed a decline. Pak Suzuki Motor Company Ltd (PSMC) was the standout performer, recording a 96% increase in sales to 6,778 units. Popular small cars such as the Alto, Cultus, and Swift all contributed to this surge. Conversely, Honda Atlas Cars (HCAR) posted a 28% decline in sales, dragged down by weaker Civic and City volumes, although its HR-V hybrid model generated growth.
Beyond the car segment, the overall auto industry saw mixed results. Two-wheeler sales grew by 19% month-on-month, while three-wheeler sales surged by 33%. Tractor sales, however, slipped 17% in August, reflecting challenges in the agricultural sector.
Industry watchers believe that if macroeconomic stability continues, Pakistan’s car sales are likely to maintain their upward trajectory in the coming months.