Pakistan's passenger car sales jump 52% in January

• Suzuki Alto leads growth in small car sales.
• Truck and bus sales up, tractor market slows.
• Experts warn auto growth depends on fiscal policies.

KARACHI: Passenger car sales in Pakistan witnessed a 52% year-on-year increase in January 2025, The News reported, citing Pakistan Automotive Manufacturers Association's (PAMA) data.

As per data released by PAMA on Tuesday, in January 2025, passenger car sales reached 11,868 units, compared to 7,802 units in the same month last year. 

Meanwhile, cumulative sales for the first seven months of FY25 (July 2024-January 2025) stood at 58,266 units, marking a 51% rise from 38,464 units recorded during the same period in FY24.

Sales in January 2025 also saw a 51% jump compared to 7,868 units sold in December 2024. 

Mashood Ali Khan, an auto expert and former chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), attributed the rise in sales to renewed consumer interest at the start of the year. 

He noted that Japanese, Korean and Chinese car models were particularly popular.

However, he cautioned that the continuation of this trend would depend on the upcoming fiscal year’s budget. He also highlighted the stagnant tractor market, which has struggled due to the imposition of sales tax and failed to meet target sales volumes compared to last year.

The truck industry showed signs of recovery with growing demand linked to the construction sector. Increased bus imports by provinces were also noted. 

Mashood suggested that if demand were strategically created and fulfilled through federal government initiatives, it could attract major automotive players and encourage investment. He further highlighted the potential for Pakistan to become an exporter of electric buses.

In January 2025, sales of 1,300cc and above cars rose by 35% to 5,518 units compared to 4,091 units in January 2024. In the 1,000cc category, 717 units were sold (475 units of Suzuki Cultus and 242 units of Suzuki WagonR) against 593 units in the same month last year.

Sales of cars below 1,000 cc surged to 5,633 units compared to 3,118 units last year. Suzuki Alto sales alone increased to 5,039 units in January 2025 from 2,983 units in January 2024. Dewan Motors’ electric vehicle, Honri-Ve, recorded sales of 15 units in January 2025.

Bus and truck sales rose to 621 units in January 2025 compared to 242 units in January 2024.

The sale of jeeps and pickups increased to 5,127 units from 2,734 units during the same period last year. Conversely, tractor sales declined to 2,761 units from 4,020 units in January 2024.

Sales of rickshaws and motorcycles climbed to 139,161 units in January 2025, up from 104,619 units in the same month last year. Sazgar Engineering Works reported combined sales data for its three-wheelers and four-wheelers for December 2024 and January 2025, as it did not release figures in December.

Mashood highlighted the growing motorcycle segment, attributing it to the fact that most people cannot afford cars. He noted that the market offers a wide variety of motorcycles to cater to consumer demand.

He also recommended that the government impose a ban on trucks older than five years from entering major cities. This move, he suggested, would not only reduce accidents but also incentivise local manufacturers to produce new trucks.