The automotive sector in Pakistan is witnessing a remarkable revival, with car sales recording a substantial increase in May 2025. According to the Pakistan Automotive Manufacturers Association (PAMA), car sales reached 14,762 units, demonstrating a notable 35% year-over-year (YoY) increase and a striking 39% month-over-month (MoM) rise.
The month-over-month increase can be attributed to a lower comparative base from April 2025, when road closures in Sindh due to strikes delayed deliveries. However, the year-over-year growth is largely supported by a more favorable macroeconomic environment, characterized by lower interest rates, easing inflation, and improving consumer confidence.
Total car sales in Pakistan for the fiscal year now stands at 126,226 units, reflecting a dramatic 39% increase from 90,545 units sold in the same period last year.
Company Highlights:
– Sazgar Engineering (SAZEW) led the pack with a remarkable 67% MoM growth and an 18% YoY increase in sales, largely due to weak sales figures in April. Their sales surged 111% YoY, totaling 9,495 units.
– Indus Motor Company (INDU) reported a 2.4 times increase in YoY sales and a 48% MoM increase, reaching 4,829 units. This marks the highest monthly sales for the company in nearly three years, driven by the strong performance of models such as the Corolla, Yaris, and Cross.
– Honda Atlas Cars (HCAR) also enjoyed a 69% YoY rise, selling 2,005 units in May, while Hyundai Nishat experienced growth of 58% YoY and 45% MoM.
– In contrast, Pak Suzuki Motor Company (PSMC) saw an 8% decline in YoY sales despite a 38% boost MoM.
In addition to cars, the market for two- and three-wheelers has thrived, with sales growing by 26% year-over-year (YoY) and 11% month-over-month (MoM), amounting to 150,175 units—an impressive three-year high. Cumulatively, sales of two- and three-wheeler vehicles for the year are now at 1.4 million units, representing a 30% increase compared to last year.
However, the tractor industry faced challenges, recording a 29% year-over-year decline in sales but a 36% month-over-month rise, attributed to ongoing weaknesses in farm economics.
Truck and bus sales, meanwhile, soared by an astonishing 147% YoY and 17% MoM, totaling 610 units, a 92% improvement from last year’s 2,345 units.
Outlook
Looking ahead, industry experts anticipate that the momentum in auto sales will persist into FY26, supported by continuing low interest rates and a forthcoming lineup of new models across various engine formats, including hybrids and plug-in hybrids. The positive trajectory in the automotive sector signals a bullish sentiment for consumers and manufacturers alike in Pakistan.
