Passenger car sales in Pakistan saw a significant 52% year-on-year increase in January 2025, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).
As per PAMA’s latest figures, passenger car sales reached 11,868 units in January 2025, a sharp rise from 7,802 units in the same month last year. The cumulative sales for the first seven months of FY25 (July 2024–January 2025) also showed substantial growth, totaling 58,266 units—marking a 51% increase from 38,464 units recorded in FY24.
Month-on-month, sales in January 2025 jumped 51% compared to the 7,868 units sold in December 2024.
Factors Driving Growth
Industry expert and former chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), Mashood Ali Khan, attributed this surge in sales to renewed consumer interest at the beginning of the year. He noted that Japanese, Korean, and Chinese car models were particularly popular among buyers.
However, he cautioned that the long-term sustainability of this growth depends on the fiscal policies outlined in the upcoming budget. He also highlighted concerns over the stagnant tractor market, which has struggled due to the imposition of sales tax and failed to meet target sales volumes.
The truck industry, on the other hand, showed signs of recovery, driven by increasing demand from the construction sector. Additionally, provincial governments ramped up bus imports, further contributing to the industry’s overall expansion.
Vehicle Sales Breakdown
- Cars (1,300cc & above): Sales rose 35% to 5,518 units in January 2025, up from 4,091 units in January 2024.
- 1,000cc Category: A total of 717 units were sold, including 475 units of Suzuki Cultus and 242 units of Suzuki WagonR, compared to 593 units in January 2024.
- Cars Below 1,000cc: Sales surged to 5,633 units from 3,118 units last year, with Suzuki Alto alone recording 5,039 units, up from 2,983 units in January 2024.
- Electric Vehicles: Dewan Motors’ Honri-Ve EV registered 15 units sold in January 2025.
Commercial & Two-Wheeler Market
- Buses & Trucks: Sales climbed to 621 units in January 2025 from 242 units in January 2024.
- Jeeps & Pickups: Increased to 5,127 units from 2,734 units in the same period last year.
- Tractors: Sales declined to 2,761 units from 4,020 units in January 2024.
- Rickshaws & Motorcycles: Sales surged to 139,161 units from 104,619 units last year, reflecting the affordability of two-wheelers compared to cars.
Industry Recommendations
Mashood Ali Khan emphasized the importance of strategic demand creation to attract major automotive investors. He also suggested that Pakistan has the potential to become an exporter of electric buses.
Additionally, he recommended imposing a ban on trucks older than five years from entering major cities. This measure, he argued, would not only reduce accidents but also encourage local manufacturers to produce newer, safer trucks.
With the automobile industry witnessing a strong start to 2025, market stakeholders remain optimistic but cautious, awaiting fiscal policy decisions that will determine the trajectory of future growth.
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