Pakistan Car Sales Plunge 49% in July 2025 Despite Year-on-Year Growth

The Pakistan Automotive Manufacturers Association (PAMA) report for July 2025 paints a mixed picture of the local auto industry. The market experienced a steep 49% month-on-month decline in car sales, with only 11,034 units sold compared to 21,773 units in June 2025. Despite this sharp drop, year-on-year (YoY) figures show a 28% increase from July 2024, suggesting the industry is still on a gradual recovery path.

Car Segment Performance

July’s downturn affected most major carmakers:

• Toyota Pakistan: Sales dropped 9% to 3,337 units (June: 3,687).
• Pak Suzuki Motors Company (PSMC): Suffered the steepest fall of 72%, selling 3,680 units (June: 13,217).
• Honda Atlas: Down 17%, with 1,500 units sold (June: 1,808).
• Hyundai Nishat: Fell 16% to 1,225 units (June: 1,457).
• Sazgar Engineering (SAZEW): Bucked the trend, posting a 20% increase to 1,079 units (June: 1,349).

Models like the Honda BR-V and HR-V saw stronger demand, while the Suzuki Alto and Swift recorded steep declines.

Motorcycle and Three-Wheeler Segment Shows Resilience

While cars struggled, motorcycles and three-wheelers recorded 122,441 units sold in July, down 12% from June’s 138,509 units, but up 44% YoY from 84,993 in July 2024.

• Atlas Honda: Sales dipped 9% to 104,892 units.
• Pak Suzuki: Down 6% to 2,518 units.
• Yamaha Pakistan: Increased 6% to 586 units.
• United Auto Motorcycle: Fell 9% to 12,335 units.

The growth in this segment highlights a consumer shift towards more affordable transport options amid economic pressure.

Trucks and Buses Struggle

The commercial vehicle sector mirrored the car market’s woes, with truck and bus sales plunging 49% to 374 units (June: 737).

Market Outlook

The steep July 2025 sales drop reflects reduced consumer purchasing power, market slowdown, and lingering global supply chain issues. However, the positive YoY trends in both cars and two/three-wheelers indicate underlying resilience.

Industry experts suggest that automakers may need to adapt their product lines and pricing strategies to meet evolving market needs, especially as demand shifts towards cost-effective and fuel-efficient vehicles.

Afsheen Gohar

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