Auto industry industry witnessed a sharp recovery in August 2025, with car sales climbing 62% year-on-year (YoY) and 27% month-on-month (MoM), according to data released by the Pakistan Automotive Manufacturers Association (PAMA).
Sales, including light commercial vehicles, vans, and jeeps, reached 14,050 units compared with 8,699 in August last year and 11,034 in July 2025. Analysts say the uptick reflects improving consumer confidence and the availability of new bank financing options.
Truck sales registered a dramatic 140% YoY rise to 596 units, while two and three-wheeler sales, including motorcycles and rickshaws, rose 42% to 148,063 units. However, tractor sales slumped by 63%, reflecting ongoing distress in the agriculture sector.
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Auto analyst Muhammad Sabir Shaikh noted that “business activity is reviving and people’s purchasing power has improved.” He credited commercial and Islamic banks for introducing competitive leasing schemes, making cars more accessible.
Industry expert Mashood Khan added that car sales in the first two months of FY26 reached 25,093 units, marking a 45% YoY rise.
He cautioned, however, that “a single negative decision of the government can set the industry back years,” urging policymakers to support local manufacturers against competition from used imports.
