The latest figures from the Pakistan Automotive Manufacturers Association (PAMA) reveal a sharp contraction in the local automotive sector, with car sales plummeting almost by half in July 2025. Yet, a broader perspective shows the market is still growing compared to last year, underscoring both volatility and resilience in Pakistan’s vehicle industry.
July Sales Take a Steep Dive
According to PAMA data, only 11,034 cars were sold in July, down from 21,773 units in June—a 49% month-on-month drop. Despite this slump, annual comparisons are more encouraging. Sales in July 2025 were 28% higher than July 2024, highlighting that the market is still on a long-term growth trajectory, even as short-term demand fluctuates.
Two-Wheelers and Three-Wheelers Remain Robust
While car sales stumbled, motorcycles and three-wheelers showed impressive resilience. July sales totaled 122,441 units, a 12% decrease from June, but a striking 44% increase compared to July 2024.
Company-level performance in this segment included:
- Atlas Honda: 104,892 units sold, down 9% from June.
- Pak Suzuki: 2,518 units, a 6% drop.
- Yamaha Pakistan: 586 units, up 6%.
- United Auto: 12,335 units, down from 13,608 units in June.
This trend suggests that more affordable and practical vehicles remain attractive to Pakistani consumers, especially amid economic uncertainty.
Car Makers’ Performance in Focus
The month’s decline affected nearly every major car manufacturer, though the impact varied:
- Pak Suzuki Motors (PSMC): Sales tumbled 72%, with only 3,680 units sold.
- Toyota Pakistan: Down 9%, totaling 3,337 units.
- Honda Atlas: 17% drop, selling 1,500 cars.
- Hyundai Nishat: 16% decline, 1,225 units sold.
- Sazgar Engineering: The exception, achieving a 20% increase with 1,079 units sold.
Notably, several manufacturers, including Kia Lucky Motors and MG, were not included in the PAMA report.
Model-Specific Winners and Losers
Some car models outperformed expectations despite the general slump:
| Model | June ’25 | July ’25 | Change |
|---|---|---|---|
| Suzuki Alto | 9,497 | 2,327 | -75% |
| Suzuki Swift | 1,784 | 522 | -71% |
| Toyota Fortuner & Hilux | 785 | 919 | +17% |
| Honda BR-V & HR-V | 98 | 357 | +264% |
| Hyundai Porter | 302 | 395 | +31% |
While small hatchbacks like the Suzuki Alto and Swift faced steep declines, SUVs and utility models saw rising demand, reflecting a shift in consumer preferences toward higher-end or practical vehicles.
Industry Insights: Navigating the Downturn
The sharp July decline exposes ongoing challenges: a slowdown in consumer spending, supply chain disruptions, and inflationary pressures are affecting the car market. Yet, the surge in motorcycles and three-wheelers indicates adaptive consumer behavior, with many turning to more affordable modes of transportation.
Sazgar’s growth demonstrates that companies targeting specific niches or adjusting pricing strategies can still succeed, while others may need to rethink production and marketing strategies in response to shifting demand.
Looking Ahead
Despite July’s slump, the overall automotive sector shows resilience. Year-on-year gains suggest that the market is not collapsing—rather, it is evolving. Manufacturers will need to focus on models showing sustained demand, consider pricing adjustments, and monitor both local economic conditions and global supply chain trends to stay competitive.
The coming months will be crucial for Pakistani car makers: the challenge lies not just in selling vehicles but in adapting to a market where consumer priorities are changing faster than ever.
