Auto industry of Pakistan has started the new fiscal year on a positive note, with car sales — including light commercial vehicles (LCVs), vans, and jeeps — rising 28.5% year-on-year in July 2025 to 11,034 units, up from 8,589 units in the same month last year, according to fresh data from the Pakistan Automotive Manufacturers Association (PAMA).
This growth comes on the back of a strong June performance, when sales had jumped nearly 64% to a striking 21,773 units. However, July’s numbers also tell a different story — a sharp 49.3% month-on-month drop as the seasonal rush faded and buyers took a step back after June’s peak.
Seasonal High Gives Way to Slower Start
Industry insiders note that June traditionally benefits from pre-budget buying, clearance sales, and anticipation of possible price hikes. In June 2025, sales were further boosted by better supply chain flows and stronger consumer confidence, climbing 47% over May.
In the broader picture, the fiscal year ending June 2025 saw 147,935 vehicles sold, marking a 42.5% jump from FY24’s 103,828 units — a strong rebound for an industry battered by high inflation, interest rates, and supply shortages in recent years.
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How the Segments Performed
In July 2025:
• Passenger cars: 7,135 units have been sold out, up 21.8% YoY but down a steep 59.6% MoM.
• LCVs, vans, and jeeps: 3,899 units, up 42.7% YoY but down 5.2% MoM.
On the production side, output grew 44% YoY to 13,998 units, though this was 14.4 percent lower than June’s 16,360 units.
Winners and Losers Among Automakers
Here is the organization-wise breakdown which keeps on displaying a mixed picture:
• Pak Suzuki (PSMC) struggled, with July sales down 18% YoY to 3,680 units and a massive 72% MoM drop from June. Popular models like Alto and Wagon-R were particularly hard-hit, plunging 75% and 84% month-on-month.
• Toyota Indus Motors (INDU) has doubled its YoY sales to 3,337 units. It is led by strong demand for Fortuner/IPV models (+17% MoM), though Corolla variants slid 17%. All-inclusive, MoM sales were down 9%.
• Honda Atlas (HCAR) has indicated a 61 percent YoY rise to 1,500 units. It is driven by City and Civic demand, but BR-V and HR-V sales collapsed 69% MoM, dragging overall volumes 17% lower from June.
• Hyundai Nishat has seen a 109% YoY hike to nearly 1,225 units, though MoM sales eased 16% as Santa Fe and Porter demand cooled.
• SAZEW (HAVAL, Baic) grew 31% YoY but slipped 20% MoM, mirroring Hyundai’s pattern.
Outlook: Momentum or Pause?
While the YoY growth is signaling a recovering market, July’s steep drop from June hints at a cautious consumer mood as economic uncertainty lingers. Industry experts keep on suggesting that sustained recovery will hinge on stable prices, lower financing costs, and continued supply chain stability — factors that will decide whether this year’s early gains turn into lasting momentum.