Auto sales rise 32% year-on-year in October, driven by strong recovery across segments

KARACHI: Pakistan’s auto industry maintained its upward momentum in October 2025, with total sales reaching 17,333 units — up 32% year-on-year and flat month-on-month — according to data released by the Pakistan Automotive Manufacturers Association (PAMA) and analysis by IMS Research. The stable macroeconomic environment, improving consumer confidence, and increased auto financing supported the year-on-year recovery, despite lower volumes at Pak Suzuki.

Tractor sales rebounded sharply after a prolonged slowdown, a trend IMS attributed to the Punjab government’s tractor scheme. Total tractor sales stood at 2,886 units, up 67% year-on-year and 3.7 times higher month-on-month. Millat Tractors Limited (MTL) sold 2,005 units, up 39% year-on-year, while Al-Ghazi Tractors Limited (AGTL) recorded 881 units, tripling its volumes.

Indus Motors (INDU) sold 4,529 units in October, marking a 79% year-on-year and 44% month-on-month increase. Growth was led by Corolla, Yaris, and Cross models, which collectively rose 78% year-on-year to 3,742 units on the back of promotional offers. Fortuner and Hilux sales increased 83% year-on-year to 787 units, driving Toyota’s market share up 6 percentage points to 26% month-on-month.

Honda Atlas Cars (HCAR) recorded sales of 2,607 units, up 72% year-on-year and 13% month-on-month. Demand for City and Civic models rose 58% year-on-year to 2,247 units, while SUV sales (HR-V and BR-V) reached 360 units, up nearly four times year-on-year due to the HR-V HEV launch. Honda’s market share improved by 2 percentage points to 15%.

Sazgar Engineering Works (SAZEW) posted a 38% year-on-year and 9% month-on-month increase in 4-wheeler sales to 1,379 units, driven by robust demand for the new Haval H6 PHEV. The company maintained its lead as Pakistan’s top local SUV assembler, ahead of Honda and Hyundai.

In the commercial vehicle segment, Ghandhara Automobiles Limited (GAL) sold 65 trucks, up 3.4 times year-on-year, while pickup truck sales (JAC X-200) doubled to 249 units. Ghandhara Nissan (GHNI) sold 379 trucks, up 108% year-on-year, along with 26 buses and 27 Isuzu D-Max units, reflecting stronger logistics and goods transport demand amid rising economic activity.

Equity house IMS Research noted that while the short-term outlook for auto sales remains positive, upcoming tariff rationalisation measures and an expected extension of the used car import age limit to five years could pressure local assemblers. SAZEW remains IMS’s top sectoral pick, backed by its rapid adoption of new energy vehicles and a target price of Rs2,230 per share.