Sazgar, Indus Motors, and Honda Lead Impressive Growth in Pakistan’s Car Market

Pakistan’s automobile sector witnessed impressive growth during the first eleven months of FY2024-25, with car, motorbike, and three-wheeler sales rising sharply. Total car sales in May 2025 reached 14,762 units, a 35% year-on-year and 39% month-on-month increase. This recovery was fueled by easing inflation, improved consumer confidence, lower financing costs, and the resolution of operational disruptions in Sindh.

Company-wise, Sazgar Engineering Works led the momentum with a 67% month-on-month increase, driven by the successful launch of its new HAVAL facelift model. Indus Motor Company saw its highest monthly sales in three years, while Honda Atlas Cars and Hyundai Nishat Motors also posted strong gains. The two- and three-wheeler segment recorded its best month in three years, with sales rising 26% year-on-year and 11% month-on-month to 150,175 units.

Auto Expert Warns: Relaxing Used Car Imports May Devastate Local Manufacturing Sector

However, mixed trends persisted in the tractor segment, while truck and bus sales soared 147% year-on-year in May. Analysts anticipate this growth momentum to carry into FY2025-26, supported by lower interest rates and new hybrid model launches. But auto expert Mashood Khan cautioned against the government’s plan to ease used car imports, warning it could damage local manufacturing, increase import bills, and harm the domestic auto parts industry.

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