KARACHI: Passenger car sales in Pakistan showed a mixed picture in July 2025, rising 22% compared to the same month last year, yet plunging 60% from June’s record pre-budget purchases, according to data from the Pakistan Automotive Manufacturers Association (PAMA).
PAMA’s statistics revealed that 7,135 passenger cars were sold in July 2025, up from 5,857 units in July 2024. Analysts attribute the year-on-year growth to lower interest rates, easing inflation, and improving consumer confidence.
However, on a month-to-month basis, sales fell sharply from 17,659 units in June 2025. The June spike had been fueled by buyers rushing to purchase vehicles ahead of anticipated budget changes, a trend experts describe as a “high base effect.”
Segment Performance: Bigger Engines Lead the Charge
Cars with engines of 1,300cc and above saw the strongest growth, with 4,290 units sold in July, up 74% from 2,465 units last year. Vehicles with 1,000cc engines recorded modest growth to 264 units, while sub-1,000cc cars fell to 2,557 units from 3,157 units in July 2024.
In the utility segment, sales of jeeps and pick-ups climbed to 3,899 units, a notable increase from 2,732 units last year. Tractor sales, by contrast, dipped to 1,195 units from 1,460 units. Trucks and buses also saw a rise, with 374 units sold compared to 307 in July 2024.
Company Highlights: Mixed Trends
- Indus Motor Company (INDU) posted a twofold YoY increase to 3,337 units, although sales dropped 9% from June. The Fortuner and IMVs led month-on-month growth, supported by sustained demand for Corolla, Yaris, and Cross models.
- Hyundai Nishat saw sales jump 2.1x YoY to 1,225 units, despite a 16% decline from June. The Hyundai Porter was the only model to gain MoM, while Tucson and Elantra saw significant yearly gains.
- Sazgar Engineering (SAZEW) experienced a 31% YoY rise but a 20% MoM fall, reflecting strong pre-budget purchases in June. The recent HAVAL facelift and the upcoming H6 PHEV launch are expected to drive further growth.
- Honda Atlas Cars (HCAR) achieved a 61% YoY increase to 1,500 units but dropped 17% from June.
- Pak Suzuki Motor Company (PSMC) reported an 18% YoY rise but a steep 72% monthly decline.
Two- and Three-Wheelers: Electric Options Emerging
The two- and three-wheeler segment grew 44% YoY to 122,441 units in July but declined 12% from June. Newly included electric motorcycles and three-wheelers contributed 542 units, with additional figures from Road Prince expected to add roughly 2,000 units.
Outlook
Auto sector analyst Myesha Sohail of Topline Securities noted that despite the MoM drop, the overall trend is positive. “With lower interest rates and a strong pipeline of new model launches, including hybrid and plug-in hybrid vehicles, the sector is poised to sustain momentum into FY26,” she said.
The year-on-year gains reflect a more stable macroeconomic environment and improved consumer sentiment, suggesting the Pakistani auto market may continue on a recovery trajectory after the pre-budget fluctuations.
