Why Pakistan’s auto recovery could fuel your next big investment?

Pakistan’s auto industry is shifting into high gear. After several tough quarters, car sales have posted a robust recovery in the first 10 months of FY25 (July–April), rising 40% year-on-year to 111,464 units, compared to 79,596 units in the same period last year, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).

Stable economy, rising demand

April 2025 alone saw passenger car sales of 10,596 units—a marginal 1% rise year-on-year but a 5% drop month-on-month. The MoM decline is largely attributed to highway closures in Sindh that delayed vehicle deliveries. However, the broader picture remains optimistic.

The surge in 10MFY25 sales is supported by:

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• A more stable macroeconomic environment
• Falling interest rates
• Easing inflation
• Improved consumer confidence
  Additionally, the introduction of new models and variants has reignited buyer interest across categories.

Who’s driving the growth?

Here’s how individual automakers performed in April 2025:

• Pak Suzuki Motor Company (PSMC): Sold 4,003 units, down 33% YoY and 12% MoM. Despite the April dip, its 10MFY25 sales rose 30% to 53,949 units.
• Indus Motor Company (INDU): Delivered 3,259 units, up 58% YoY and 4% MoM. Its 10MFY25 sales rose 58% YoY to 24,877 units.
• Honda Atlas Cars (HCAR): Clocked in 1,707 units in April, posting a strong 70% YoY and 20% MoM growth. Cumulative 10MFY25 sales stand at 14,483 units, up 32%.
• Hyundai Nishat: Posted 900 units, up 9% YoY but down 5% MoM. Its cumulative sales reached 8,190 units (+18% YoY).
• Sazgar Engineering Works (SAZEW): April sales remained flat YoY at 549 units but fell 42% MoM due to a 10-day strike. However, 10MFY25 sales surged 130% YoY to 8,576 units on strong demand for the Haval brand.
• Others: Fell sharply by 71% YoY and 83% MoM, highlighting consolidation among major players.

Two- and three-wheelers: riding high

Motorcycle and three-wheeler sales also showed strength, rising 26% YoY and 6% MoM in April 2025 to 135,721 units. Lower inflation and improved purchasing power have played a key role. For 10MFY25, sales hit 1.23 million units—up 30% YoY.

• Atlas Honda (ATLH): Posted 115,300 units (+21% YoY).
• SAZEW: Grew 62% YoY to 1,958 units in April.
• PSMC: Sold 1,892 units in April (+12% YoY).
• Others: Saw a 72% YoY jump.

Tractors: still in the mud

The tractor segment struggled. April 2025 sales fell 48% YoY to 1,602 units. This brings 10MFY25 sales down 36% YoY to 24,832 units. Weak farm economics continue to weigh on the sector.

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• Millat Tractors: Sales dropped 58% YoY in April.
• AGTL: Fell 28% YoY but gained 24% MoM.

Trucks & buses: gearing up

A bright spot is the commercial vehicles segment, where truck and bus sales rose 127% YoY and 13% MoM in April 2025 to 520 units. 10MFY25 sales now stand at 3,885 units—up 85% YoY.

• Isuzu: Remained the leader with 283 units sold (+107% YoY).
• Master Motors: Delivered 152 units (+198% YoY).
• JAC: Surged 258% YoY to 43 units.
• Hino: Posted a modest 45% YoY increase.

Outlook: green light for growth

The auto sector’s performance in 10MFY25 suggests a strong rebound is underway. With inflation stabilizing, interest rates on a downward trend, and the rupee holding firm, the industry is likely to maintain its growth momentum.

Upcoming model launches and improved financing conditions are expected to further fuel demand. While challenges like supply chain disruptions and policy unpredictability persist, the sector appears well-positioned for a strong FY25 close.

Source: Topline Securities (Private) 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 →