Pakistan’s auto industry experienced significant growth in May 2025, as total car sales reached 14,762 units, marking a 35% year-on-year (YoY) and 39% month-on-month (MoM) increase, according to data from the Pakistan Automotive Manufacturers Association (PAMA). This boost pushed the cumulative car sales for the 11-month period (Jul-May) to 126,226 units, reflecting a 39% rise compared to the same period last year.

The surge in sales can be attributed to an overall improvement in macroeconomic conditions, such as lower interest rates, reduced inflation, and a more positive consumer sentiment. Car sales bounced back from a sluggish April, which was impacted by road closures and delivery delays in Sindh due to strikes and law and order issues.

Indus Motor Company (INDU) emerged as a top performer among automakers, witnessing a remarkable 2.4x YoY and 48% MoM increase in May with 4,829 units sold. This marked the highest monthly sales for the company in nearly three years, driven by strong demand for models like Corolla, Yaris, and Cross variants.

Honda Atlas Cars (HCAR) also saw a substantial growth of 69% YoY and 17% MoM, selling 2,005 units in May. Pak Suzuki Motor Company (PSMC), despite an 8% YoY decline, experienced a 38% MoM increase to reach 5,519 units. Hyundai Nishat recorded a 58% YoY and 45% MoM rise in sales.

Sazgar Engineering Works (SAZEW) witnessed the highest MoM growth of 67%, reaching 919 units, following the launch of a new HAVAL variant in April. The company's sales for the 11MFY25 period surged by 111% YoY to 9,495 units.

Two- and three-wheeler sales also saw a significant increase, totaling 150,175 units in May 2025, up by 26% YoY and 11% MoM, marking a three-year high. For the 11MFY25 period, sales reached 1.38 million units, a 30% increase from the previous year. Atlas Honda led the pack with 130,240 units sold in May.

In the commercial segment, truck and bus sales soared by 147% YoY and 17% MoM to 610 units in May, bringing the 11MFY25 volumes to 4,495 units, a 92% surge from the previous year.

Tractor sales, however, showed a mixed trend. While total sales in May reached 2,184 units, a 29% YoY increase, Millat Tractors experienced a 34% decline to 1,569 units due to weak farm economics. AGTL sold 615 units, up from 743 in April.