Pakistan’s automobile sector saw a notable recovery in August 2025, with car sales rising to 14,050 units, reflecting a 27-28% month-on-month (MoM) increase and a 61-62% year-on-year (YoY) surge, according to data from the Pakistan Automotive Manufacturers Association (PAMA).
The total sales for the first two months of FY26 reached 25,093 units, marking a 45% YoY increase compared to 17,288 units in the same period last year.
The rise in sales came after a sharp decline in July, which saw car sales drop to a seven-month low of 11,000 units due to pre-buying ahead of tax hikes.
The growth was most significant in the small car segment, with sales of vehicles under 1000cc surging by 79% MoM to 4,569 units, led by the Suzuki Alto. The 1000cc segment also doubled, reaching 519 units, while sales of cars above 1300cc rose by 15% MoM to 4,928 units.
Analysts attributed the August recovery to a combination of factors, including a low base effect, lower interest rates, easing inflation, and the introduction of new models such as the Haval PHEV and Honda HR-V Hybrid.
Pak Suzuki Motor Company (PSMC) posted the largest recovery, with a 96% MoM and 107% YoY increase in sales, reaching 7,154 units. The Swift, Cultus, Alto, Ravi, and Every models all saw double-digit growth. Suzuki Swift volumes alone rose by 182% MoM, while Cultus and Alto increased by 108% and 80%, respectively. However, sales of the Wagon R dipped by 12% MoM.
Indus Motor Company (INDU), the local assembler of Toyota, recorded a more modest 2% MoM increase, reaching 3,400 units, still 60% higher YoY. The Corolla, Yaris, and Corolla Cross models saw a 6% MoM increase, while Fortuner and Hilux sales dropped by 8%.
Honda Atlas Cars (HCAR) experienced a 28% MoM decline, with sales falling to 1,073 units, largely due to a 39% drop in Civic and City sales. However, the BR-V and HR-V lines saw increased sales with the introduction of hybrid models.
Hyundai Nishat reported 1,212 units sold, marking an 83% YoY increase, though slightly lower MoM. Sazgar Engineering (SAZEW) sold 1,049 units, a 3% MoM decrease but a 110% YoY increase, bolstered by sales of Haval SUVs and BAIC models.
Beyond passenger cars, the broader auto market also experienced growth. Two-wheeler sales rose 19% MoM and 42% YoY to 148,063 units in August, with Atlas Honda (ATLH) leading the charge with 126,529 units, a 21% MoM increase.
Three-wheeler sales climbed 33% MoM to 2,067 units, with SAZEW seeing a 46% rise in sales. However, tractor sales dropped 17% MoM to 996 units, with Millat Tractors and AGTL both posting declines.
The commercial vehicle segment saw positive growth, with truck and bus sales increasing 23% MoM and 47% YoY to 770 units, driven by stronger demand in logistics and transportation.
In terms of production, car output exceeded sales, with PAMA reporting a significant increase in production, which more than doubled to 22,446 units during the July-August FY26 period, compared to 11,171 units last year.
The Suzuki Alto led the production surge, with output up 220% YoY to 11,046 units. However, analysts caution that production growth may not be sustainable due to ongoing challenges, including high vehicle prices, expensive auto financing, and currency volatility.
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