Auto Sales Rebound in August, Driven by Small Cars and Hybrids

September 12, 2025 –

Pakistan’s automobile sector posted a strong recovery in August 2025, with total car sales rising to 14,050 units, up 27% month-on-month (MoM) and 62% year-on-year (YoY), according to data from the Pakistan Automotive Manufacturers Association (PAMA).

Cumulative sales for the first two months of FY26 stood at 25,093 units, reflecting a 45% YoY increase compared to the same period last year. The rebound followed July’s slump, when sales had dipped to around 11,000 units amid pre-buying in June ahead of tax hikes.

Growth in August was led by the small car segment, where sales of vehicles under 1000cc surged 79% MoM to 4,569 units, dominated by the Suzuki Alto. Sales in the 1000cc category doubled to 519 units, while cars above 1300cc rose 15% MoM to 4,928 units.

Among automakers, Pak Suzuki Motor Company (PSMC) posted the sharpest recovery with sales climbing 96% MoM and 107% YoY to 7,154 units. The Swift, Cultus, and Alto showed significant gains, while Wagon R sales slipped slightly. Indus Motor Company (Toyota) sold 3,400 units, a modest 2% MoM rise but 60% higher YoY. Honda Atlas Cars (HCAR) reported 1,073 units, down 28% MoM, while Hyundai Nishat sold 1,212 units and Sazgar Engineering delivered 1,049 units.

The broader market also gained momentum. Two-wheeler sales rose 19% MoM to 148,063 units, led by Atlas Honda. Three-wheeler volumes increased 33% MoM, while truck and bus sales jumped 23% MoM and 47% YoY. However, tractor sales slipped 17% MoM due to rural and flood-related challenges.

On the production side, output more than doubled to 22,446 units in July–August FY26, compared to 11,171 units in the same period last year, with Suzuki Alto leading the surge. Analysts note, however, that long-term demand may remain under pressure due to high prices, expensive auto financing, and currency volatility.