Pakistan Auto Sales Surge in May, Fueled by Economic Recovery

⁤ ⁤ ⁤Updated June 13, 2025
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KARACHI, Pakistan — Pakistan’s automotive industry experienced a notable boost in May, with overall auto sales, including cars,‍ SUVs, pickups, and⁣ vans, reaching 14,762 units. ‍This represents a 35% ⁤increase compared to may of last year and a 39% rise ⁣from April, according to data from the Pakistan Automotive⁢ Manufacturers Association (PAMA).

Myesha Sohail of Topline Securities reported that cumulative sales for the first‍ 11 months of fiscal year 2025 totaled 126,226‍ units, ‍a 39% jump‍ from the 90,545 units⁣ sold⁢ during the same period in the previous year. The surge in auto sales reflects a more stable macroeconomic environment, characterized by lower interest rates, easing inflation, and improving consumer sentiment, Sohail said.

Sazgar engineering led the⁢ pack with a ⁤67% month-on-month increase ‍and an ⁢18% year-on-year rise, selling 919 ⁢units in May.This growth is attributed to a rebound from lower sales in April and the prosperous launch of the new Haval facelift.Sazgar’s sales ⁣for the first 11 months of FY25 surged⁤ by 111% to 9,495 units.

Indus Motor Company (IMC) also saw significant gains, selling 4,828 ⁢units in May, marking a⁣ 48%⁢ increase month-on-month and a remarkable 136% jump year-on-year. This represents IMC’s highest monthly sales in nearly three years.Their sales for the⁤ first 11 months of ‍FY25 soared to 29,706 units, a 67% increase.

Honda⁢ Atlas Cars Ltd (HACL) experienced a 69% ⁤year-on-year and ⁤17% month-on-month increase, selling 2,005 units in May. HACL’s sales for the first 11 months‍ of FY25 rose by 36% ⁣to 16,488 units.

Pak Suzuki Motor company Ltd (PSMCL) sold ⁣5,519 units in May, reflecting an 8% year-on-year decrease but a ⁢38% month-on-month increase. However, their ⁣sales from July to May FY25 surged by ⁤25%⁢ to 59,468 units.

Hyundai Nishat recorded ⁢a ⁤58% year-on-year and 45% month-on-month increase in May, selling 1,307 units. Their sales for the first 11 months of FY25 reached 9,497 units, a 22% increase.

Sales of two- and three-wheelers also saw a ⁢significant rise, increasing ⁤by ‍26% year-on-year and 11% month-on-month, totaling 150,175 units in May, a ⁣three-year high. This brings the total sales for the first 11 months of FY25 to 1.4 million units, a 30% year-on-year increase.

In contrast,the tractor industry faced challenges,with sales falling by 29% year-on-year in may to ⁣2,184 units,even though there was a 36% month-on-month increase. tractor sales⁤ for the first 11 months of FY25 fell by 30%⁢ to 27,016 units, attributed to weak farm economics.

Truck and ⁤bus sales showed strong growth, increasing⁢ by 147% year-on-year and 17% month-on-month to 610 units in May. This‍ brings the total sales for the first 11 months of FY25 to 4,495 units, a 92% increase.

mashood Ali⁣ Khan, an auto parts maker and exporter, noted that⁣ despite government initiatives to support agriculture, the tractor industry continues to struggle due to additional taxes imposed in the⁤ last budget.

Khan also expressed concern about the potential impact of the upcoming budget’s proposal to increase ⁤the sales tax on small cars,which could negatively affect affordability for the middle class.

though, Khan added that a further decrease in interest rates to single digits could further boost car sales volumes, and scaling⁤ up financing options could provide additional support to the industry.

What’s next

Industry analysts anticipate that continued economic⁤ stability and⁤ favorable government policies will further drive growth in Pakistan’s automotive market. The potential for lower interest rates and increased financing options could make car ownership more accessible, boosting sales volumes in the coming months.