Karachi, February 11, 2025 – Pakistan’s car sales witnessed an impressive surge of 73% on a Month-on-Month (MoM) basis in January 2025, driven largely by the New Year effect, which traditionally sees a spike in automobile purchases.
According to data released by the Pakistan Automotive Manufacturers Association (PAMA), total car sales in January 2025 reached 17,010 units, a significant jump from 9,820 units in December 2024. On a Year-on-Year (YoY) basis, car sales rose by 61%, as January 2024 recorded a total of 10,536 units sold. The reported car sales figures also include data from Sazgar Engineering Works (SAZEW) for both December 2024 and January 2025, as last month’s figures were not previously disclosed.
Analysts at Topline Securities attribute this sharp MoM increase to a combination of factors. December typically experiences lower sales due to consumers delaying purchases in anticipation of new-year registrations. Additionally, SAZEW’s sales data not being accounted for in December resulted in an apparent boost in January’s car sales figures.
The impressive YoY increase in car sales is fueled by multiple factors, including a reduction in interest rates, improved consumer confidence, and the introduction of new vehicle models and variants. These dynamics have collectively stimulated demand in the automotive sector, leading to increased sales figures.
From July 2024 to January 2025, cumulative car sales reached 77,686 units, marking a 55% YoY increase from 49,989 units recorded in the same period of the previous fiscal year. This robust performance highlights the recovering automobile sector in Pakistan.
Company-Wise Car Sales Performance
All major automobile manufacturers in Pakistan recorded both MoM and YoY increases in car sales.
• Sazgar Engineering Works (SAZEW) posted a remarkable 2.75x increase in car sales, rising from 2,253 units in 7MFY24 to 6,201 units in 7MFY25.
• Pak Suzuki Motor Company (PSMC) recorded an 81% YoY and 37% MoM growth, primarily fueled by Alto sales, which hit a two-year high (last recorded in December 2022).
• Indus Motor Company (INDU) registered a 21% YoY and 2x MoM increase, with Fortuner and IMV models leading the growth. Toyota Hilux sales rose to 931 units, a two-year high, significantly contributing to INDU’s car sales surge.
• Honda Atlas Cars (HCAR) saw a 65% YoY and a staggering 99% MoM increase in car sales.
• Hyundai Nishat also experienced growth, with a 25% YoY and 14% MoM rise in its car sales figures.
Other Auto Sales Trends
Beyond passenger vehicles, the two- and three-wheeler segment saw a 33% YoY and 18% MoM increase, reaching a total of 139,161 units in January 2025, the highest in 2.5 years. This figure also includes two months’ worth of sales for SAZEW.
Meanwhile, the total tractor industry reported sales of 2,761 units, reflecting a 28% YoY drop and a 61% MoM decline. In contrast, truck and bus sales experienced a substantial rise, surging 2.57x YoY and 3.22x MoM to reach 621 units, marking their highest level in three years since January 2022.
Outlook for Pakistan’s Car Sales in 2025
The overall automobile sector in Pakistan has shown a strong recovery, with car sales seeing consistent growth. This momentum is expected to persist in the coming months, supported by improved auto financing options amid declining interest rates and the launch of new vehicle models. With consumer sentiment on the rise and favorable economic conditions, Pakistan’s car sales are projected to maintain an upward trajectory throughout 2025.