Pakistani Auto Market Booms as Sales Rise 62% YoY in August 2025

Car sales in Pakistan climbed to 14,050 units in August 2025, marking a 62% year-on-year (YoY) increase and a 27% month-on-month (MoM) rise, according to the Pakistan Automotive Manufacturers Association (PAMA). The growth came despite flooding that disrupted several regions.

Factors Behind Growth

The auto industry’s recovery has been driven by lower interest rates, easing inflation, and improving consumer sentiment, alongside the launch of new variants. Cumulative sales for the first two months of FY26 reached 25,093 units, up 45% YoY from 17,288 units in 2MFY25, Topline Securities revealed.

Company-Wise Sales

• Pak Suzuki Motor Company (PSMC) posted the sharpest rise, with sales up 96% YoY and 94% MoM. The Alto nearly doubled volumes, while the Suzuki Swift recorded sales of 1,473 units, up 2.7x YoY and 2.8x MoM.
• Hyundai Nishat saw an 83% YoY increase but a slight 1% MoM decline, with 1,212 units sold, supported by Tucson and Elantra.
• Indus Motor Company (INDU) delivered 60% YoY and 2% MoM growth to reach 3,400 units.
• Honda Atlas Cars (HCAR) lagged, reporting a 7% YoY drop and 28% MoM decline to 1,073 units.
• Sazgar Engineering (SAZEW) sales grew 10% YoY but dipped 3% MoM to 1,049 units, including deliveries of the newly introduced Haval H6 PHEV.

Future Outlook

Analysts expect FY26 car sales to sustain positive momentum, fueled by new hybrid and plug-in hybrid models and continued support from a stable macroeconomic environment.