Auto sales surge 67% YoY in September as demand rebounds:report

Pakistan’s auto industry sustained its upward trajectory in September 2025, with total sales reaching 17,174 units, up 67% year-on-year (YoY) and 22% month-on-month (MoM), according to data released by the Pakistan Automotive Manufacturers Association (PAMA). The growth was driven by strong performances from Honda and Sazgar, reflecting improving macroeconomic conditions, lower interest rates, and a rebound in consumer purchasing power. 

Indus Motor Company (INDU) sold 3,152 units in September, up 33% YoY but down 7% MoM. Sales of Corolla, Yaris, and Cross rose 41% YoY to 2,655 units, supported by competitive pricing. However, Hilux and Fortuner volumes were flat YoY and declined 40% MoM to 497 units amid growing competition in the pickup segment. The company’s market share slipped 6 percentage points (ppt) MoM to 18%.

Honda Atlas Cars (HCAR) reported a significant rebound, selling 2,307 units, up 82% YoY and 115% MoM. Sedan sales surged 73% YoY to 1,977 units, driven by the newly launched City Aspire S and clearance of delayed deliveries from the previous month. The SUV segment rose 162% YoY to 330 units, supported by the HR-V HEV launch. Honda’s market share climbed 5ppt MoM to 13%.

Sazgar Engineering Works (SAZEW) posted robust sales of 3,293 units, up 10% YoY and 6% MoM, led by the Haval H6 PHEV, which lifted Haval sales by 73% YoY to 1,426 units. The company continued to perform well despite rising competition from models like Hyundai Tucson and Honda HR-V HEV.

In contrast, the tractor segment remained under pressure, with total sales down 27% YoY to 790 units, reflecting ongoing weakness in the agricultural sector. Millat Tractors (MTL) sold 620 units (down 17% YoY) and Al-Ghazi Tractors (AGTL) 170 units (down 49% YoY). Analysts noted that the Punjab government’s plan to procure 20,000 tractors could support future demand.

The truck segment showed strong recovery, rising 168% YoY to 730 units. Ghandhara Nissan (GHNI) led with 545 units (up 173% YoY), supported by higher demand for goods transportation, while Ghandhara Industries (GAL) sold 71 units, up 27% YoY.

Industry-wide, improving economic activity and easing financial conditions have underpinned the rebound in vehicle sales. However, analysts caution that the government’s proposed tariff rationalization and increase in used car import age limit to five years could dampen demand for lower-end vehicles.

SAZEW remains the top pick, driven by its early adoption of new energy vehicles (NEVs), with a target price of PKR 2,230 per share, according to Intermarket Securities.