KARACHI (Kashmir English): Pakistan’s automobile industry saw a sharp slowdown in July 2025, with sales tumbling 49% month-on-month (MoM) to 11,034 units, reveals the data from the Pakistan Automotive Manufacturers Association (PAMA).
Despite the steep monthly slowdown, volumes were up 28% year-on-year (YoY) due to a low base in July last year.
Industry experts attribute the MoM decline primarily to the high base of June 2025, when a rush of pre-buying occurred ahead of tax hikes in the federal budget 2025-26.
Auto customers
The budget imposed an Electric Vehicle (EV) adoption levy and hiked the sales tax on 850cc vehicles from 12.5% to 18%, prompting customers to advance purchases before the changes took effect.
“The MoM decline is mainly attributed to the high base effect from Jun’25, when sales spiked due to a surge in pre-buying ahead of the increase in vehicle taxes, namely the imposition of the EV adoption levy and the increase in ST on 850cc vehicles from 12.5% to 18% under the FY26 federal budget,” wrote Arif Habib Limited (AHL) Research.
The break down reveals that the 1,300cc and above power vehicles saw a 37% MoM decline, with sales dropping to 4,290 units.
The 1,000cc segment saw a 61% MoM decrease, totaling 264 units. Additionally, the below 1,000cc segment recorded a 75% MoM decline, with sales reaching 2,557 units, according to AHL.
Among assemblers, Indus Motor Company Ltd (INDU) posted a relatively modest 9% MoM drop to 3,337 units, as gains in Fortuner and Hilux sales (+17% MoM) partly offset declines in Corolla, Yaris, and Corolla Cross (-17% MoM).
Pak Suzuki Motor Company Ltd (PSMC) experienced the steepest decline, with volumes shrinking 72% MoM to 3,450 units across all models, led by Alto (-75%) and Wagon R (-84%).
Honda Atlas Cars (HCAR) saw sales fall 17% MoM, driven by a 33% slide in Civic/City, though BR-V/HR-V sales rose 3.6 times MoM.
In the SUV segment, Sazgar Engineering (SAZEW) recorded a 20% MoM decline to 1,079 units due to weaker Haval demand (-19%).
