Pakistan Auto Sales Rise 62% Year on Year in August 2025

Pakistan’s auto industry made a strong comeback in August 2025,  with car sales climbing to 14,050 units — a jump of around 27–28% from July and an impressive 61–62% higher than last year, according to fresh data from the (Pakistan Auto Sales) Pakistan Automotive Manufacturers Association (PAMA).

Pakistan Auto Sales Rise 62% Year on Year in August 2025

In the first two months of the fiscal year (FY26), total sales hit 25,093 units, up 45% year-on-year compared to 17,288 units during the same period last year.

The rebound came after a rough July, when sales slumped to a seven-month low of 11,000 units, largely because customers rushed to buy cars ahead of tax hikes.

Small Cars Lead the Way

The biggest boost came from the small car segment. Sales of vehicles under 1000cc surged by 79% month-on-month to 4,569 units, led by the ever-popular Suzuki Alto. The 1000cc category doubled to 519 units, while larger cars above 1300cc also posted a 15% increase, reaching 4,928 units.

Analysts say the recovery was fueled by multiple factors: a low base effect, cheaper financing thanks to lower interest rates, cooling inflation, and the launch of new models like the Haval PHEV and Honda HR-V Hybrid.

Also Read:Yamaha Shuts Down Motorcycle Manufacturing in Pakistan

Winners and Losers

• Pak Suzuki Motor Company (PSMC) was the clear winner, recording a 96% MoM and 107% YoY jump with sales hitting 7,154 units. Almost every model performed well — Swift sales skyrocketed 182% MoM, Cultus 108%, and Alto 80%. Only the Wagon R dipped, down 12%.
• Indus Motor Company (Toyota) saw a modest 2% MoM rise to 3,400 units, but that still translated into a 60% YoY growth. Corolla, Yaris, and Corolla Cross sales improved, though Fortuner and Hilux slipped 8%.
• Honda Atlas Cars (HCAR) struggled, with sales dropping 28% MoM to 1,073 units, mostly because Civic and City sales plunged by 39%. On the bright side, demand for the BR-V and HR-V hybrids improved.
• Hyundai Nishat sold 1,212 units, up 83% YoY but slightly down from July.
• Sazgar Engineering (SAZEW) sold 1,049 units, dipping 3% MoM but more than doubling YoY, thanks to Haval SUVs and BAIC models.

Beyond Passenger Cars

The broader auto market also showed strength:

• Motorcycles jumped 19% MoM and 42% YoY to 148,063 units, with Atlas Honda leading at 126,529 units.
• Three-wheelers rose 33% MoM to 2,067 units, with SAZEW enjoying a 46% increase.
• Tractors, however, dropped 17% MoM to 996 units, as both Millat Tractors and AGTL posted declines.
• Trucks and buses picked up speed, with sales rising 23% MoM and 47% YoY to 770 units, reflecting stronger demand in logistics and transportation.

Production Outpaces Sales

Car production also surged. PAMA reported output of 22,446 units in July–August FY26 — more than double the 11,171 units produced in the same period last year. The Suzuki Alto led the way again, with production up 220% YoY to 11,046 units.

Still, analysts warn that this pace may not last. High car prices, costly auto loans, and a volatile currency could weigh on demand in the coming months.