Which Cars Are Driving Pakistan’s Auto Recovery in 2025?

After months of volatility in the broader market, the Pakistani auto sector is showing signs of resilience. April 2025 is expected to deliver a modest 4% year-on-year increase in auto sales, driven primarily by impressive performances from Indus Motors (INDU) and Honda Atlas Cars (HCAR).

According to the latest data preview by JS Global, the three leading auto manufacturers — Pak Suzuki (PSMC), Indus Motors (INDU), and Honda Atlas (HCAR) — representing 84% of the four-wheeler market, are set to post a cumulative volume of 9,466 units, up from 9,097 units in March.

Winners and Losers

While overall sales are expected to rise, not all automakers are moving at the same speed.

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• Honda Atlas (HCAR) is poised to lead the pack with a 70% YoY increase, thanks to strong performance in its sedan lineup, particularly the Honda City. SUV sales (HR-V and BR-V) are also expected to triple compared to last year.
• Indus Motors (INDU) is expected to follow closely with a 58% YoY growth, driven by the facelifted Yaris, which has seen a 3.3x jump in sales. Corolla volumes are also up 74%, and Hilux demand remains strong due to uptake from both retail and government buyers.
• On the flip side, Pak Suzuki (PSMC) is likely to report a 25% YoY decline, with volumes slipping from 4,538 units in March to 4,500 in April. Despite being the market leader, the brand appears to be struggling to maintain momentum.

Financing Support Drives Momentum

Another major tailwind is the improvement in auto financing, which rose 7.5% YoY in March 2025, reaching Rs. 257 billion. This trend reflects the positive impact of monetary easing, with interest rates on a downward path. As financing becomes more affordable, demand for passenger vehicles is likely to improve further in the coming months.

10-Month Snapshot: FY25 vs FY24

The year-to-date performance shows solid recovery across the sector:

This 37% YoY increase across the three largest automakers confirms that the sector is in a recovery phase, though dynamics vary company by company.

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Looking Ahead: Budget and Competition Loom Large

While April’s growth is encouraging, challenges remain. The upcoming FY26 budget is a key event to watch, particularly in terms of duties, taxes, and policy incentives. Moreover, increased competition in the SUV space from Korean and Chinese brands, like the new KIA Sportage-L, Hyundai Tucson, and Haval SUVs, continues to weigh heavily on legacy models like the Corolla Cross, which is expected to see an 81% YoY decline in April.

The Pakistani auto sector is not shifting into top gear just yet, but the signs are clear — monetary easing, steady financing growth, and strong performance from certain models are nudging the industry forward. The April numbers may be modest, but they underscore a growing sense of stability and potential for long-term recovery, especially if fiscal policy remains supportive.

Source: JS Global Capital Limited

⚠️ 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 →