KARACHI: Car sales in Pakistan jumped by 43% in the fiscal year 2024-25, the Pakistan Automotive Manufacturers Association (PAMA) reported on Thursday, an increase that analysts attributed to stable macroeconomic environment, introduction of more variants, lower interest rates, and improving consumer sentiment.
In FY25, car sales (including jeeps and pick-ups) stood at 148,023 units, against 103,829 units reported in FY24.
In June 2025, car sales clocked in at 21,773 units, reflecting a 64% year-on-year (YoY) and 47% month-on-month (MoM) rise.
“The YoY growth is supported by a more stable macroeconomic environment, introduction of more variants, lower interest rates, easing inflation, and improving consumer sentiment,” said Myesha Sohail from Topline Research in a statement.
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According to PAMA data, except for farm tractors, sales of all vehicles including two, three and four-wheelers gained momentum.
Sales of jeeps-cum-pickups increased by 61% to 35,820 units. Trucks and buses sales went up by 103.2% to 4,444 units and by 73.6% to 788 units, respectively. Sales of motorcycles and rickshaws also shot up by 32.1% to 1,518,752 units.
Meanwhile, sales of farm tractors sharply fell down by 36.4% to 29,192 units as both farmers and progressive farmers face economic issues due to climate change and lower prices of their output.
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Talking to media, auto sector expert Muhammad Sabir Shaikh said tractor sales fell because growers could not get better prices of their respective last agricultural produce.
A dramatic decrease in the interest rate and easy leasing policies of banks pushed up car sales and customers are nipping down to new vehicles while getting rid of old ones, Shaikh added.
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