Pakistan Car Sales Surge 40%, Production Doubles in Two Months

Pakistan’s auto industry reported a 40% jump in car sales and a 101% rise in local production between July and August 2025, driven by strong demand for popular models and financing incentives.

The Pakistan Automobile Manufacturers Association (PAMA) credited the surge to aggressive financing schemes, competitive pricing and the launch of new variants, marking one of the fastest expansions in the sector this year.

Strong Model Performance

• Suzuki Swift sales climbed from 1,061 units in July to 1,995 units in August, an 88.03% increase.
• Hyundai Elantra also saw double-digit growth over the two-month period.

Financing Incentives

• Banks offered subsidized auto loans with interest rates as low as 3%, stimulating first-time buyers.
• Manufacturers introduced cashback and trade-in schemes, further boosting demand.

Industry Outlook

• PAMA forecasts full-year sales to exceed 300,000 units if current trends continue.
• Local production capacity utilization rose above 85%, prompting plans for plant expansions.

With strong consumer sentiment and supportive policies, Pakistan’s automotive sector appears poised for sustained growth into 2026.