Car sales in Pakistan surged by 28% in July 2025, marking a significant increase following the introduction of new automobile models.
Pakistan Sees 28% Year-on-Year Increase in Car Sales in July 2025
Pakistan's car industry experienced a significant boost in July 2025, with a 28% year-on-year (YoY) increase in sales. The total number of cars sold reached 11,034 units, compared to 8,589 units in the same month last year.
This growth can be attributed to several key factors. The launch of new car models in recent months, such as the new HAVAL facelift and the H6 PHEV variant, has boosted consumer interest. Additionally, the availability of affordable car financing with lower interest rates has made purchasing a car more accessible for many consumers.
A more stable macroeconomic environment, characterized by easing inflation and improved consumer sentiment, has also contributed to this growth. Topline Research's analyst Myesha Sohail attributes this to a lower interest rate environment and a stable economic environment, which has improved consumer confidence.
However, despite the strong YoY growth, sales declined 49% month-on-month (MoM) compared to June 2025. This decline is primarily due to a high base effect from pre-buying activity ahead of tax hikes on electric vehicles and certain engine categories in the FY26 federal budget.
Looking ahead to FY26 (fiscal year 2025-26), the growth momentum is expected to continue. Sustained lower interest rates, the continued introduction of new models, especially hybrid and plug-in hybrid vehicles, and an improving economic environment maintaining positive consumer sentiment are expected to support continued growth.
Company highlights include Toyota and Hyundai Nishat, whose sales more than doubled YoY, and Honda, whose sales jumped 61% YoY. Unfortunately, Suzuki experienced a decline in sales.
In the tractor industry, sales declined 18% YoY and 57% MoM, reaching 1,195 units. The Hyundai Porter was the only model to post MoM growth, rising 31%.
In summary, the combination of new model launches, better financing conditions, and macroeconomic stability has driven the 28% YoY growth in July 2025 car sales. These factors are expected to continue supporting growth through FY26.
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