Auto Sales Surge in Pakistan as New Year Drives Demand

Karachi: Pakistan’s auto industry experienced a notable increase in sales in January 2025, with total industry volumes rising by 31% compared to the same period last year. The surge was primarily driven by a significant 52% increase in passenger car and light commercial vehicle (LCV) sales, as well as an impressive 218% rise in truck sales.

According to a statement by AKD Securities Limited, passenger cars with engine capacities of 800cc and below were the standout performers, with sales reaching 5,633 units, marking an 81% increase year-over-year. Vehicles with engine capacities of 1000cc and above also saw a rise in sales, reporting 5,518 units, a 35% increase. This growth was largely attributed to increased sales of popular models like the Civic and City.

Major original equipment manufacturers (OEMs) recorded substantial growth, with INDU and HCAR posting year-over-year increases of 21% and 65%, respectively.

The spike in sales is being attributed to the new year effect, which typically boosts consumer interest and purchases. AKD Securities Limited has revised its forecast to a 25% year-over-year growth in passenger car and LCV sales, in light of the higher-than-expected growth observed in the first seven months of the fiscal year 2025. Despite this growth, the firm maintains its target price for INDU at PKR 3,350 per share, anticipating that new entrants and variants will continue to drive market momentum.

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