KARACHI: The Pakistani automotive sector experienced a notable uptick in October 2025, with a 38% year-over-year increase in sales volumes. The industry sold a total of 20,985 units during the month, driven predominantly by the passenger car segment.
This growth trend has been attributed to declining financing rates, alongside original equipment manufacturers (OEMs) providing attractive financing offers on select models. The uptick comes amid an environment of improving GDP growth, which has bolstered consumer confidence and spending.
Within the passenger car segment, vehicles with engine capacities of 1,000cc and above led the surge, showing an 88% year-over-year increase. This was largely due to a rise in sales of popular models such as the Corolla, Cross, Yaris, Civic, and City. Conversely, sales of smaller engine vehicles, 1,000cc and below, saw a decline of 9% year-over-year.
Looking ahead, industry analysts project a sustained growth trajectory for the auto sector, anticipating over 20% year-over-year growth for the fiscal years 2026 and 2027. Among the automakers, INDU has been highlighted as a recommended investment, with a target price of PKR 3,681 per share by June 2026. INDU is expected to significantly capture the hybrid electric vehicle (HEV) market moving forward.
The insights were provided by AKD Securities Limited, reflecting a positive outlook for the automotive industry’s continued expansion.
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