Automobile Sales Surge in June 2025, Marking a Year of Recovery

Karachi: Automobile sales in Pakistan showed significant growth in June 2025, with major industry players achieving the highest combined sales volumes since December 2022. According to a report from JS Global, Indus Motors Company Ltd, Honda Atlas Cars Ltd, and Pak Suzuki Motor Company Ltd are expected to report a combined year-on-year growth of 33% and a month-on-month increase of 9%, reaching approximately 14,500 units.

Honda Atlas Cars Ltd led this resurgence with a 65% increase in sales compared to the previous year, followed by Pak Suzuki Motor Company Ltd with a 31% rise, and Indus Motors Company Ltd with a 25% gain. The growth was attributed to pre-budget buying as consumers anticipated negative budgetary measures. Sazgar Engineering Works Ltd also posted a 55% year-on-year increase in sales for June 2025.

The fiscal year 2025 marked a period of recovery for the auto sector, with an expected overall volume growth of 37% to around 121,000 units. This recovery was supported by improving macroeconomic conditions and a boost in consumer confidence, driven by stable car prices.

However, the fiscal year 2026 budget introduced challenges for the sector, particularly with the introduction of a New Energy Vehicle levy. This has prompted some car manufacturers to raise prices, and others are expected to follow suit. On the other hand, the reduction in regulatory and additional customs duties on imported cars is likely to decrease prices, especially for luxury vehicles.