July 2025 Car Sales Grow 28% Year-on-Year, Dip 49% Month-on-Month

Pakistan’s car market opened the new fiscal year with results that looked good on paper but less exciting in practice. Numbers released by the Pakistan Automotive Manufacturers Association (PAMA) show sales of 11,034 units in July 2025, which is 28% higher than July last year. On the flip side, sales were almost cut in half compared with June.

The yearly growth gives the impression of a sector finding its feet again. Lower interest rates and easing inflation have encouraged buyers, and fresh model launches have added some spark to the showrooms. But the month-on-month slump paints a different picture. June was unusually strong, as many buyers rushed to book cars before new budget measures kicked in, including higher taxes on smaller cars and electric vehicles. That flurry left July looking quieter than it really was.

Company Performances

Toyota had the standout performance, nearly doubling sales to 3,337 units compared with last July. Corolla, Yaris and Cross did most of the heavy lifting, while Fortuner and IMVs kept volumes steady.

Honda followed with 1,500 units sold, up 61% year-on-year, thanks largely to higher Civic and City numbers.

Hyundai also enjoyed a strong month, moving 1,225 units — more than twice its sales from a year earlier. Tucson and Elantra posted sharp gains, while the Porter was the only model to do better than June.

For Pak Suzuki, however, July was tough. Sales slipped 18% YoY, and the absence of old WagonR from the production chart suggests the new model may be on its way out. Alto sales also declined by 75% month-on-month sliding from 9,497 units in June to only 2,327 units in July.

Sazgar Engineering, the assembler of Haval, grew sales by 31%. The facelift of its Haval line helped, and the company’s assurance that budget changes wouldn’t push up prices gave buyers some relief.

The bigger picture

The shift toward electric vehicles is slowly gathering pace. Honda’s newly launched ICON e scooter sold over 300 units in its first month, while United’s EV bikes also picked up momentum compared to last year. Industry watchers expect hybrids and plug-in hybrids to become more prominent as automakers roll out new models.

In two- and three-wheelers, sales jumped 44% YoY to more than 122,000 units, led by Atlas Honda’s dominance. Tractors, however, remained under pressure, with sales slipping 18% YoY as farmers held back on new purchases. Trucks and buses showed yearly growth but dropped sharply compared to June.

Outlook

Analysts believe the auto sector will keep some forward momentum in FY26, helped by easier financing, a calmer economy, and new model launches. Still, monthly ups and downs are expected as taxes, supply issues, and consumer sentiment continue to shape the market.

For now, the message is mixed: compared to last year, the industry looks healthier, but it is still some distance away from a smooth recovery.