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Automobile Sales Surge Year-on-Year but Fall on Month-to-Month Basis

Total sales of automobiles in Pakistan reached 11,034 units in July, a 28% increase over the same month a year prior but 49% lower than the units sold in June.

Analysts have attributed the drastic monthly decline to a high base effect in June, driven by customers opting to buy vehicles ahead of anticipated budgetary changes. The year-on-year growth, meanwhile, has been linked to a more stable macroeconomic environment, with lower interest rates and easing inflation improving consumer sentiment.

Company breakup

Indus Motor Company doubled its sales in July 2025 compared to a year prior, but saw a 9% decline from June. The 3,337 units sold by the company included a 17% rise in the ‘Fortuner and IMVs’ segment, while demand for Corolla, Yaris, and Cross also remained robust.

Hyundai Nishat’s sales also doubled year-on-year, but fell by 16% on monthly basis to 1,225 units. The Hyundai Porter was the only model to post monthly growth of 31%, while the Tucson and Elantra models recorded 5x and 4x year-on-year increases, respectively.

Sazgar Engineering’s sales fell 20% month-to-month, but surged 31% on an annual basis. The monthly fall has been attributed to strong June sales from pre-buying on fears of additional duties—later clarified by the company as having no impact on HAVAL prices. Sales were also supported by the launch of the new HAVAL facelift, with further growth expected from August onwards following the introduction of the H6 PHEV variant.

Honda Atlas Cars recorded a 61% year-on-year increase but a 17% month-on-month decline to 1,500 units in July. Pak Suzuki Motor Company posted an 18% year-on-year and 72% month-on-month decline.

Sales of two-to-three wheelers climbed 44% year-on-year, but fell 12% month-on-month to 122,441 units in July. Electric motorcycles and three-wheelers, newly added to the data, accounted for 542 units of the total. Road Prince figures are pending and may add around 2,000 units to the total.

The tractor industry recorded sales of 1,195 units, down 18% year-on-year and 57% month-on-month. Tractor sales fell on year-on-year basis due to weak farm economics.

Truck and bus sales rose 22% year-on-year in July but declined 49% on a monthly basis with 374 units.

The positive momentum in automobile sales is anticipated to continue in the ongoing fiscal year, supported by lower interest rates and a strong pipeline of new model launches across various engine types, including hybrid and plug-in hybrid.