Business Desk 
Aug 15, 2025
Pakistan's car industry saw a 49% month-over-month drop in sales during a major downturn, selling just 11,034 units in July 2025.
This steep drop is ascribed to the high base effect from June 2025, when pre-buying spiked in anticipation of tax increases in the federal budget for FY26.
Sales were up 28% year over year despite the monthly slump because of a low base in July 2024.
One important element affecting consumer sentiment, according to industry experts, is the macroeconomic climate.
It is anticipated that the market will stabilise as interest rates and inflation decrease. AHL Research stated that the "high base effect from June 25th, when sales spiked due to a surge in pre-buying ahead of the increase in vehicle taxes," was primarily responsible for the MoM decline.
Sales of 1,300cc and up fell 37% month over month to 4,290 units. The 1,000cc segment saw a 61% monthly decline, coming in at 264 units.
With sales of 2,557 units, the segment below 1,000cc saw a 75% monthly decline.
A comparatively slight 9% month-over-month decline to 3,337 units was reported by Indus Motor Company Ltd.
With volumes dropping 72% month over month to 3,450 units across all models, Pak Suzuki Motor Company Ltd. experienced the steepest decline.
Sales of Honda Atlas cars decreased 17% month over month, primarily due to a decline in Civic and City sales.
Analysts remain hopeful about the future despite the present slowdown. According to Myesha Sohail of Topline Securities, "We expect the momentum in auto sales to continue in FY26, supported by lower interest rates and a strong pipeline of new model launches across various engine types, including hybrid and plug-in hybrid."
It is anticipated that the industry will gain from players introducing new production lines and an improving macroeconomic environment.
