Lahore – June 12, 2025: Auto Sales increased, Pakistan’s auto sector showed significant signs of recovery in May 2025, as total sales by major automobile assemblers reached a 30-month high. The industry recorded sales of 13,334 units, marking a 35% year-on-year (YoY) and 33% month-on-month (MoM) increase. This is the highest monthly figure since late 2022.
Cumulatively, during the first 11 months of the current fiscal year (11MFY25), total car and light commercial vehicle (LCV) sales reached 126,250 units, up 39% compared to 90,539 units in the same period last year.
Performance by Leading Automakers
Sales growth was led by Pakistan’s top three auto assemblers—Indus Motor Company (Toyota), Pak Suzuki Motor Company (PSMC), and Honda Atlas Cars (HCAR):
- Indus Motor Company (Toyota) sold 4,829 units, recording a 136% YoY increase.
- Honda Atlas Cars posted 2,005 units, reflecting a 69% YoY rise.
- Pak Suzuki Motor Company led in volume with 6,500 units, up 8% YoY and a strong 62% MoM rebound.
Combined, these three companies contributed over 13,000 units to May’s total, driven by consumer demand, improved inventory flow, and resolution of supply chain disruptions.
Read More: New Honda CB150F Hits Pakistani Market with Bold Look and Better Specs
Market Momentum: 11MFY25 Overview
In the July 2024 to May 2025 period:
- PSMC sold 59,468 units (+25% YoY)
- Indus Motor sold 29,706 units (+72% YoY)
- Honda sold 16,248 units (+10% YoY)
- Hyundai Nishat delivered 9,457 units (+22% YoY)
- Sazgar Haval recorded 9,445 units, posting a 111% increase
- Kia Lucky Motors sold 1,111 units
Key Drivers Behind the Rebound
- Economic Stabilization: Declining inflation, currency stability, and improved financing terms revived consumer confidence.
- Clearing of Backlogs: Delays at Karachi Port and previous inventory shortages were resolved in recent months.
- Increased Availability: New model launches and enhanced dealership stock supported the rise in deliveries.
Budget 2025–26: A New Challenge
Despite the current uptrend, the sector is facing uncertainty ahead of the FY26 federal budget. Key proposals under consideration include:
- Raising GST on vehicles under 850cc from 12.5% to 18%
- Applying a flat 18% GST on hybrid vehicles, up from the current 8.5%
Industry analysts warn that if these tax revisions are approved, vehicle prices—particularly for hybrid models—could rise by Rs 800,000 to Rs 1.4 million, potentially slowing demand in the second half of the year. Stay tuned with Bloom Pakistan
Read More: Suzuki Alto Faces Major Price Surge After New Taxes
