After two tough years, Pakistan’s auto industry finally turned a corner in FY25, with total vehicle sales climbing 20% year-on-year to 182,452 units. According to a report by AKD research.The recovery was driven by a surge in demand across segments, but especially in passenger cars, which posted a 74% rise in June 2025 alone.
A mix of lower interest rates, relaxed financing options, and selective price cuts helped pull buyers back into showrooms. June was particularly strong, with total industry sales hitting 25,305 units — up 43% from the same month last year — as many customers rushed to beat tax changes announced in the federal budget.
Toyota-maker Indus Motor Company (INDU) stood out with a 61% jump in sales, delivering over 33,000 units during the year. Most of the lift came from popular models like Corolla, Yaris, and Cross, which together sold more than 25,000 units. Sales of the Fortuner and IMVs almost doubled.
Honda (HCAR) followed with an 18,296-unit total for FY25, up 38% from last year. Civic and City models were the key drivers here, with sales rising 44%. Its SUV line — the BR-V and HR-V — saw a slight dip of 2%.
In the affordable car segment, Suzuki (PSMC) saw volumes rise 34% to nearly 73,000 units. The Alto remained its top-seller, up 29%, while the Swift surged 64%. Suzuki’s new van, the Every, added another 3,390 units to its total.
Truck sales more than doubled — up 103% to 4,444 units — as enforcement of axle load regulations boosted demand. On the flip side, tractor sales continued to struggle, falling 36% to just over 29,000 units due to weak farm income and delays in subsidy schemes.
Looking ahead, analysts expect the sector to keep growing, forecasting 22% growth in FY26 and 20% in FY27. Among listed players, Indus Motor remains the top pick, with a December 2025 target price of PKR 3,350 per share.
