The automotive industry in Pakistan was in an impressive ascending path during the first nine months of the fiscal year 25, as car sales reached 100868 units – a noticeable increase of 46 % compared to the previous year, according to a report issued by the mediation company Topline.
This increase in demand reflects the improvement of the economic environment, as consumers benefit from stable inflation, low interest rates, and more optimistic expectations in general. The funding conditions also played a major role, allowing more people to buy new cars.
This growth is a positive transformation of this industry, which has faced some difficult years in the past. With inflation slowing down and low interest rates, both car buyers and manufacturers see more appropriate conditions. New car models and updated versions also added to excitement, attracting customers looking for modern features, especially in the high -end market. These new offers played an important role in increasing the demand for both locally produced vehicles and imported.
In March 2025, a total of 11,098 cars was sold, indicating an 18 % increase from the same month last year. However, sales decreased by 8 % compared to February 2025. This decrease is significantly due to the rise in February sales, which usually sees a batch with the start of the New Year. The decline in March is also associated with the beginning of Ramadan, which traditionally sees a slowdown in consumer activity due to shorter working hours and focusing on religious celebration.
Among the main players, Pak Suzuki Motor Company (PSMC) recorded a 11 % steady growth in March 2025, although 15 % decreased compared to February. Popular models such as Alto, Ravi and Swift, each of which continues to pay the request. The total PSMC sales for the first nine months of FY25 reached 49,946 units, which represents an increase of 41 % on an annual basis. Indus Motor Company (Indu), on the other hand, has seen an explosive growth of 84 % on an annual basis and an increase of 20 % from February, due to the sales of Corolla and Yarris. Indu 9MFY25 sales rose to 21,618 units, which is an impressive increase of 58 % on an annual basis. However, Honda Atlas (HCAR) cars have seen a setback, with a decrease of 35 % YOY and my illiteracy a 30 % decrease. Nevertheless, HCAR is still able to report a 29 % increase on an annual basis during the 9MFY25 period, with total sales of 12776 units. Sazgar Engineering (SAZEW) has emerged with great results, as it recorded 87 % growth year on an annual basis in March and a huge increase of 153 % for a period of nine months, with 8,027 units.
The motorcycle and three -wheel drive, which are still vital to many consumers due to the ability to withstand costs, witnessed a significant increase of 34 % in the annual sales, with a total of 125311 units in March 2025. However, sales decreased slightly by 3 % from the previous month. The demand in this sector is still driven by the need for effective and cost -effective fuel transportation, with the vision of major manufacturers such as Atlas Honda (ATLH) and PSMC strong sales.
On the other hand, the tractor market faces challenges. Sales decreased by 67 % on an annual basis in March, with only 1538 units, which reflects the slowdown in agricultural activity. Meanwhile, the truck and bus sector enjoyed strong growth, as sales increased by 47 % on an annual basis to 460 units in March, which represents an 80 % increase for 9MFY25. Companies such as ISUZU and Master benefit from this trend, highlighting a positive transformation in the commercial vehicle market.
In the future, the future of the auto sector in Pakistan is still bright. Analysts expect sales to continue to grow during the 25th fiscal year, with the support of further cuts in interest rates, stable rupees, and normalization of deliveries after Ramazan. The introduction of new models and variables will preserve the demand, ensuring that the auto industry remains on a strong recovery path. With the stability of the economy, both consumers and companies in the sector are well placed for continuous growth.