Pakistan’s automobile industry reported sales of 13,100 units in March, an 8% decline from the same month last year, attributed to a decrease in tractor sales.
According to data issued by the Pakistan Automotive Manufacturers Association, tractor sales in March declined by 67% to 1,538 units. An analyst from AKD Securities said this was likely due to farmers postponing their purchases in anticipation of the government announcing a new subsidy scheme.
March also saw truck sales of 353 units, a 30% increase over the 272 units sold in March 2024. The AKD analysts attributed this to axle load implementation by the government, as well as financing provided under the Kamyab Jawan Scheme.
Bucking the trend
Indus Motors, however, bucked the overall trend, posting an 84% increase in sales during March 2025 compared to the same month last year. It said it had sold 3,131 units, primarily due to a surge in demand for Fortuners and IMVs, which jointly posted sales of 753 units. Additionally, sales of Corolla, Yaris and Cross were reported at 2,378 units, up by 54% year-on-year.
New market
The AKD analyst said the U.S.’s recent imposition of hefty tariffs on Chinese goods, including electric vehicles, would likely hamper shipments from Chinese automakers to the American market. This could, they said, lead them to seek alternative markets, including Pakistan.
According to the analyst, if Chinese manufacturers choose to enter the Pakistani market, the country could see a wave of competitively priced electric vehicles and hybrids, posing a significant threat to local manufacturers. The analyst warned that the emerging situation required domestic manufacturers to innovate and enhance their product offerings to stay competitive with Chinese companies.
However, they added, local players retain an advantage with their well-established dealership and service networks. It said BYD could expedite the establishment of its plant in Pakistan to maintain continuity in its supply chain operations in China and circumvent additional duties on imported vehicles.
Car costs
The imposition of ‘reciprocal’ tariffs could also trigger a global decline in steel prices and freight charges, potentially reducing vehicle production costs and car prices in Pakistan. However, the strengthening Japanese Yen may offset some of these benefits