Pakistan auto sales rise 55% YoY, is the auto market recovering?

Key takeaways

• Pakistan’s auto industry recorded 17,010 car sales in January 2025, marking a 61% YoY increase and a 73% MoM growth.
• 7MFY25 car sales reached 77,686 units, up 55% YoY, driven by lower interest rates, better consumer confidence, and new model launches.
• Pak Suzuki (PSMC) led the market, posting an 81% YoY sales increase, mainly due to strong Alto sales.
• Indus Motors (INDU) and Honda Atlas (HCAR) reported strong double-digit growth, with Hilux sales doubling YoY.
• Motorbike and three-wheeler sales grew 33% YoY, hitting 139,161 units, the highest in 2.5 years.
• Truck and bus sales increased 2.57x YoY, reaching 621 units, marking a comeback after three years.

Auto sector on the rise: January 2025 sees strong growth

Pakistan’s automobile industry came back strong in January 2025, with total car sales reaching 17,010 units, reflecting a 61% YoY and 73% MoM growth. The sharp rise in sales can be attributed to lower interest rates, improved consumer confidence, and the launch of new models.

The MoM increase was largely due to a low base effect, as December usually sees slower car sales due to buyers delaying purchases for new-year registrations. Moreover, Sazgar Engineering Works’ (SAZEW) December and January sales were reported together, further boosting the January numbers.

For 7MFY25 (July 2024 – January 2025), car sales totaled 77,686 units, marking a 55% YoY increase from 49,989 units in 7MFY24.

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Company-wise breakdown: who’s leading the market?

Pak Suzuki (PSMC): The undisputed leader

Pak Suzuki Motor Company (PSMC) recorded 8,250 units in January 2025, marking an 81% YoY and 37% MoM increase. This growth was mainly driven by Alto sales, which hit a two-year high, last seen in December 2022.

Indus Motor Company (INDU): strong demand for Hilux and Fortuner

Indus Motors (Toyota) registered a 21% YoY and 2x MoM rise, supported by higher demand for Hilux and Fortuner models. Hilux sales saw a sharp increase, reaching 931 units in January 2025, reflecting a 2-year high.

Honda Atlas Cars (HCAR): impressive growth across models

Honda Atlas (HCAR) posted a 65% YoY and 99% MoM jump, fueled by strong sedan and SUV sales. Meanwhile, Hyundai Nishat saw a 25% YoY and 14% MoM increase.

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SAZEW: a remarkable 2.75x YoY growth

Sazgar Engineering Works (SAZEW) witnessed a 2.75x YoY increase, rising from 2,253 units in 7MFY24 to 6,201 units in 7MFY25.

Other segments: two-wheelers, trucks, and buses also show strong gains

The motorbike and three-wheeler segment posted 139,161 units in January 2025, reflecting a 33% YoY and 18% MoM increase. Notably, this marks the highest level in 2.5 years.

The tractor industry recorded 2,761 units in January, down 28% YoY, but showing a 61% MoM recovery.

The truck and bus segment rebounded significantly, recording 621 units, a 2.57x YoY and 23.2x MoM increase, last seen in January 2022.

Auto sales positioned for further growth

The recovery in auto sales highlights recovering consumer demand, supported by improving financing conditions and new vehicle launches. If interest rates continue to stabilize, and economic confidence strengthens, the auto industry is likely to sustain its momentum in the coming months.

Source: Topline Research

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →