Karachi, October 10, 2025 – Pakistan’s automotive sector began the fiscal year 2025–26 on a strong note, with car sales rising by an impressive 53% year-on-year (YoY) during the first quarter (July–September).
According to the Pakistan Automotive Manufacturers Association (PAMA), total passenger car sales surged to 42,267 units, up from 27,585 units in the same period last year, reflecting renewed consumer confidence and economic recovery.
A report by Arif Habib Limited highlighted that in September 2025, car sales climbed to 17,200 units, showing a 22% month-on-month (MoM) and a 67% YoY increase. The robust performance was largely driven by improved financing conditions, reduced interest rates, and easing inflation, which collectively enhanced consumers’ purchasing power and boosted demand for new vehicles.
Honda Atlas Cars (HCAR) led the momentum with Civic and City models witnessing a 183% MoM increase, totaling 1,977 units sold. Pak Suzuki Motor Company (PSMC) also saw remarkable growth, with its Ravi variant jumping 190% MoM to 1,722 units. Meanwhile, Sazgar Engineering (SAZEW) recorded a 36% MoM increase, selling 1,426 units.
Segment-wise, the 1,300cc and above category recorded a 26% MoM increase, reaching 6,224 units, while the below 1,000cc segment grew 19% MoM to 5,439 units. The 1,000cc category, however, declined by 17% MoM, totaling 433 units.
Indus Motor Company (IMC) reported a 7% MoM decline in volumetric sales, selling 3,152 units, largely due to a 41% MoM drop in Fortuner and Hilux demand. However, Corolla, Yaris, and Corolla Cross models showed a modest 4% MoM improvement.
Pak Suzuki reported an overall 26% MoM growth in sales, led by strong demand for Ravi, Alto, and Every, while Swift, Cultus, and Wagon R saw mixed results. Honda Atlas posted a 115% MoM increase, supported by its popular Civic and City lineup.
In other segments, two-wheeler volumes rose 8% MoM, with Atlas Honda selling 135,603 units, whereas three-wheeler sales slipped 14% MoM. Tractor sales, affected by weak farm economics and recent floods, declined 21% MoM.
Analysts expect momentum to continue in coming months as interest rates ease and consumer demand stabilizes, potentially marking FY26 as a turnaround year for Pakistan’s auto industry.