KARACHI: Pakistan’s auto industry posted a strong rebound in FY25, with double- and triple-digit growth across most segments, signalling a revival in demand amid improved macroeconomic conditions. The only exception was the tractor segment, which recorded a sharp 36.4pc decline due to continued stress in the agricultural economy.

According to data released by the Pakistan Automotive Manufacturers Association, car sales rose by 38pc to 112,203 units in FY25 from 81,579 units a year earlier.

Light commercial vehicles, pickups, vans, and sport utility vehicles recorded a 61pc increase, with total sales rising to 35,820 units from 22,250.

Truck sales more than doubled, jumping 103pc to 4,444 units compared to 2,187 in FY24, while bus sales grew 74pc to 788 units from 454. The two- and three-wheeler segments also showed improvement, with sales climbing 32pc to 1.518 million units from 1.150m units.

However, tractor sales plunged to 29,192 units in FY25 from 45,911 units in FY24, reflecting subdued farm income and weak rural demand.

Myesha Sohail of Topline Securities said car, LCV, jeep, and pickup sales in June 2025 alone reached 21,773 units — a 64pc year-on-year and 47pc month-on-month increase.

The sharp MoM rise was driven primarily by pre-buying ahead of the July 1 hike in general sales tax (GST) from 12.5pc to 18pc, with Suzuki Alto sales reaching a 39-month high.

She added that the YoY growth was supported by a stable macroeconomic environment, lower interest rates, easing inflation, a stronger rupee, and improving consumer confidence. The availability of new car variants also contributed to the rising trend.

Among manufacturers, Pak Suzuki Motor Company led the market with sales of 72,685 units in FY25, up 34pc. Indus Motor Company followed with a 61pc increase, selling 33,393 units. Honda Atlas Cars Limited sold 18,296 units, marking a 38pc rise, while Hyundai Nishat’s sales grew 20pc to 10,954 units.

Sazgar Engineering posted one of the most impressive growth rates, with sales doubling to 10,844 units in FY25 — up 102pc from the previous year — boosted by strong demand for its newly facelifted Haval model.

Looking ahead, Sohail expects the positive momentum in the auto sector to continue into FY26, driven by lower borrowing costs and upcoming launches across various fuel technologies, including hybrid and plug-in hybrid models.

Published in Dawn, July 11th, 2025