KARACHI: Passenger car sales (PAMA members) in the country surged by 57 per cent year-on-year (YoY) in August 2025 compared to August 2024, according to data released on Thursday. Sales in August also showed a month-on-month (MoM) increase compared to July 2025.
According to the Pakistan Automotive Manufacturers Association (PAMA), passenger car sales (PAMA member cars) rose by 57 per cent to 10,057 units in August 2025 compared to 6,417 units sold during the same month last year.
For the cumulative two months of FY26, passenger car sales increased by 40 per cent, reaching 17,192 units compared to 12,274 units during the same period last year. Mashood Ali Khan, former chairperson of PAAPAM, said that after the budget, July and August sales were better than last year due to a decline in interest rates. “If the interest rate is further reduced to single digit, there would be a further increase in sales,” he said.
According to PAMA data, August 2025 sales were 41 per cent higher than July 2025, when 7,135 units were sold. Sales of cars with engines 1,300cc and above were recorded at 4,928 units, a 48 per cent increase compared to 3,330 units last year. Sales of 1,000cc cars rose to 519 units compared to 321 units in the same month last year, while sales of cars below 1,000cc rose by 65 per cent to 4,569 units, up from 2,766 units last year. Dewan’s electric vehicle Honri-Ve recorded sales of 41 units in August.
Sales of jeeps and pick-ups increased to 3,993 units from 2,282 units during the same period last year. Trucks and buses witnessed sales of 666 units, up from 300 units sold during the same month of the previous year. Meanwhile, tractor sales plunged to 996 units, compared to 2,670 units in August 2024.
Sales of motorcycles and rickshaws increased by 42 per cent YoY and 19 per cent MoM totalling to 148,063 units in Aug 2025. This takes 2MFY26 sales to 273k units, a 44 per cent YoY rise.
Khan said there was a challenge for the automotive part makers. “If used car import is opened, local models of Toyota, Suzuki and Honda will suffer, and pressure will mount on part manufacturers. They are puzzled in new investment,” he said. “As the government says used cars tenure will increase to five years from three years, it will take share from the local industry.”
He said performance of Chinese players; Haval and Changan was good, but they do not have localisation. He said that Pakistan forex reserves were not sustainable for CBU imports while CKD imports were low. “We are taking loans from the IMF, and used cars imports are not in favour of forex reserves,” he said.
He said there was an increase in motorcycles, which showed that lower middle class was focusing on buying motorcycles because of car affordability issues. He said that it was not guaranteed if the positive trend would continue for the next quarter or throughout the year.
According to Myesha Sohail, an auto sector analyst at Topline Securities, despite floods the industry has recorded MoM growth, driven primarily by higher sales of Pak Suzuki Motor Company (PSMC).
YoY growth is supported by a more stable macroeconomic environment, introduction of more variants, lower interest rates, easing inflation, and improving consumer sentiment. Company wise: PSMC posted the highest growth, with sales rising 96 per cent YoY and 94 per cent MoM. Alto volumes surged 2.1x YoY and 80 per cent MoM, with the MoM rise largely reflecting a low base as June sales were pulled forward ahead of the GST hike effective July 1, 2025. Suzuki Swift also recorded strong growth, up 2.7x YoY and 2.8x MoM to 1,473 units.
Hyundai Nishat recorded 83 per cent YoY growth but a 1 per cent MoM decline to 1,212 units in Aug 2025, driven mainly by strong Tucson and Elantra sales.Indus Motor Company (INDU) posted 60 per cent YoY and 2 per cent MoM growth to 3,400 units. Honda Atlas Cars (HCAR) saw a decline, down 7 per cent YoY and 28 per cent MoM to 1,073 units.
Sazgar Engineering (SAZEW) reported a 10 per cent YoY increase but a 3.0 per cent MoM fall to 1,049 units, which included sales of the newly launched HAVAL H6 PHEV variant in August.“We expect positive momentum to continue in auto sales in FY26 due to lower interest rates and pipeline of new models to be launched by companies across different engines ie hybrid, plugin hybrid etc,” she said.