Auto sales surge 62% YoY in August 2025

Pakistan’s auto industry recorded a strong rebound in August 2025, with overall passenger car sales rising by 62% year-on-year, according to data compiled by the Pakistan Automotive Manufacturers Association (PAMA) and reported by JS Global. The performance marked one of the sharpest recoveries in recent months, driven largely by small car demand and new SUV entries, though certain segments continued to face challenges.

Cumulative sales for the first two months of fiscal year 2025–26 (2MFY26) posted 45% growth YoY, highlighting a broader recovery in consumer demand despite inflationary pressures and high financing costs. Analysts attribute the surge to pent-up demand, easing supply constraints, and selective price incentives by automakers.Car Sales

Breaking down the numbers, Honda Atlas Cars (HCAR) reported mixed results. Civic and City sales fell by 35% YoY in August to just 699 units, reflecting weakening affordability in the higher-end sedan market. In contrast, sales of BR-V and HR-V models surged by 399% YoY, signaling growing consumer preference for compact SUVs. Overall, Honda’s total sales in the month fell 7% compared to last year.

Indus Motor Company (Toyota) posted a solid month, with Corolla, Yaris, and Cross sales climbing 63% YoY to 2,553 units. However, its high-margin Fortuner and IMV (Hilux) lineup slipped by 50% YoY, underscoring price-sensitive demand shifts. Despite this, Toyota’s total sales jumped 60% compared to the same month last year.

Pak Suzuki Motor Company (PSMC) led the recovery, posting a 96% YoY increase with sales hitting 7,154 units in August. The Suzuki Swift stood out with a staggering 164% rise, while the popular Cultus grew 279% YoY. Alto, Suzuki’s entry-level model, also rebounded by 107%, highlighting consumer gravitation toward small, affordable cars amid economic uncertainty.

Hyundai Nishat Motor registered robust growth of 83% YoY, driven by its Tucson and Elantra models, while Kia (GHNI) surged 160% YoY, cementing its foothold in the SUV segment. Sazgar Engineering Works (SAZEW), known for its SUVs, posted a modest 10% YoY increase, with volumes stabilizing after earlier strong growth.

On the commercial and EV side, Dewan Farooque Motors Limited (DFML), which assembles EVs and light commercial vehicles, reported a slight 5% YoY decline. Other smaller assemblers such as Ghandhara Automobiles (GAL) and Isuzu showed mixed performances, with some truck categories gaining but buses and pickups seeing declines.

One area of continued weakness was tractors, which recorded a steep 63% YoY drop in August 2025. Sales fell to under 1,000 units for the month, reflecting ongoing stress in the agriculture sector amid high input costs, flooding recovery challenges, and depressed rural incomes. The two leading players, Millat Tractors (MTL) and Al-Ghazi Tractors (AGTL), both posted significant declines.

Market analysts note that the rebound in car sales contrasts with Pakistan’s broader inflationary environment, where high energy and fuel costs have been pushing up household expenses. The strong YoY recovery is partly a result of very low sales bases during the same period last year when auto financing rates and supply shortages severely constrained demand. On a month-on-month basis, however, total industry volumes were down compared to July 2025, suggesting demand remains volatile.

Industry watchers caution that sustained growth will depend on macroeconomic stability, exchange rate trends, and policy clarity on auto financing. While consumer appetite for SUVs and affordable cars appears resilient, high-end sedans and agriculture-linked tractors remain under pressure. If energy costs continue to climb, operating expenses for automakers and purchasing power for households could again be strained.

Still, the August 2025 surge provides relief for automakers after months of subdued performance. With new models and expanded SUV offerings, the sector has regained momentum, even as structural challenges in affordability and rural demand persist. The coming months will be crucial in determining whether the recovery strengthens into a sustained uptrend or remains a temporary rebound.