KARACHI: Passenger car sales by members of the Pakistan Automotive Manufacturers Association (PAMA) rose 31 per cent year-on-year (YoY) in May 2025, reaching 11,119 units compared to 8,487 units in May 2024.
According to data released by PAMA on Thursday, a total of 94,388 passenger cars were sold during the first 11 months of FY25, up 32 per cent from 71,451 units sold in the same period of FY24.
On a month-on-month basis, car sales in May 2025 grew by 39 per cent compared to 8,004 units sold in April 2025.Mashood Ali Khan, an auto expert and former chairperson of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) noted that except for tractors, all other segments have shown strong performance.
“Two-wheeler sales have increased steadily throughout the year. This trend continues because four-wheelers have become too expensive, prompting lower-middle-income consumers to shift to motorcycles,” he said.
He added that the car industry has recovered after a prolonged crisis over the past couple of years. However, the small car segment could face challenges if GST is increased in the upcoming budget.
“The tractor industry is still suffering from last year’s budget impact. It has not recovered despite 11 months having passed,” he said.He emphasised that government policies should be designed in consultation with industry stakeholders. “A GST hike on cars will make things difficult for both the industry and consumers,” he warned.
"Industrialisation is essential for Pakistan’s economic growth. Localisation of parts and production is crucial, and a clear policy is needed to support this. Otherwise, the industry will continue to face challenges,” he added.
Sales of 1300cc and above cars stood at 6,778 units in May 2025, marking a 94 percent increase compared to 3,496 units in May 2024.The 1,000cc segment recorded sales of just 476 units -- 252 units of Suzuki Cultus and 224 of Suzuki WagonR -- down slightly from 482 units in the same month last year.
Sales in the below-1,000cc category declined 14 per cent YoY to 3,865 units, compared to 4,509 units in May 2024. Suzuki Alto sold 3,409 units in May 2025, down from 4,062 units in the same month last year.
Dewan’s electric vehicle, Honri-Ve, which had not recorded any sales in recent months, sold 24 units in May.Sales of buses and trucks more than doubled to 610 units in May 2025, up from 247 units in the same month last year.
Jeep and pick-up sales increased to 3,643 units from 2,462 units in May 2024.Tractor sales, however, dropped sharply to 1,569 units from 3,078 units a year earlier.Rickshaw and motorcycle sales rose to 150,175 units in May 2025, up from 118,811 units in May 2024.
According to Myesha Sohail of Topline Securities, the month-on-month (MoM) rise in sales was mainly due to a lower base in April 2025, when road closures in Sindh, caused by protests over canal issues, delayed deliveries and depressed sales.
She added that year-on-year growth was driven by a more stable macroeconomic environment, lower interest rates, easing inflation, and improving consumer sentiment.
Sazgar Engineering Works Ltd (SAZEW) posted the highest month-on-month growth at 67 per cent and an 18 per cent year-on-year increase, supported by the launch of a new facelift model of HAVAL and a low sales base in April.
Indus Motor Company (INDU) reported a 2.4x year-on-year and 48 per cent month-on-month increase in sales, reaching 4,829 units, its highest monthly sales in nearly three years. This was driven by strong sales of Corolla, Yaris and Cross models.
Honda Atlas Cars (HCAR) recorded a 69 per cent YoY and 17 per cent MoM increase in sales, reaching 2,005 units in May 2025.
Pak Suzuki Motor Company (PSMC) reported an 8.0 per cent YoY decline, but a 38 per cent MoM increase in sales. Hyundai Nishat Motors saw a 58 per cent YoY and 45 per cent MoM increase.
“We expect the momentum in auto sales to continue into FY26, driven by lower interest rates and a pipeline of new model launches, including hybrids and plug-in hybrids,” Myesha Sohail said.
