Pakistan Automotive Sector Shows Growth in FY 2025; Electric Vehicle Market in Early Stages

According to the data released by the Pakistan Automotive Manufacturers Association (PAMA), the sales of vehicles in the first 10 months of the fiscal year 2025 reached a total of 83,269 units, a 32% increase compared to 62,964 units sold during the same period in the previous fiscal year (2024). Industry analysts have expressed a positive outlook for the automotive sector, with growth being seen in multiple segments.

In April 2025, sales of 1,000cc vehicles stood at 230 units, with Suzuki Cultus contributing 146 units and Suzuki Wagon R contributing 84 units. Interestingly, for the second consecutive month, Deewan’s Honda-Honri Ve recorded no sales. However, there was a noticeable increase in the sales of jeeps and pickup trucks, rising from 1,642 units during the same period last year to 2,592 units. Additionally, sales of motorcycles and rickshaws saw a 26% increase, bringing the total sales to 135,721 units.

Furthermore, the total sales of trucks and buses in the first 10 months of FY 2025 stood at 3,885 units, which is an 85% increase compared to 2,098 units sold in the same period of FY 2024.

According to the former chairman of the Pakistan Automotive Parts and Accessories Manufacturers Association (PAAPAM), Mashood Ali Khan, the automotive sector is witnessing signs of recovery, thanks to the reduction in inflation and interest rates. He anticipates that the positive trend will continue until June, but the federal budget could impact the sector’s performance.

Mashood Ali Khan further stated that the new Electric Vehicle Policy (NEVP) has been introduced, and some automotive manufacturers (OEMs) have resumed the local production of hybrid and electric vehicles (EVs). He highlighted that Japanese car manufacturers are introducing Hybrid Electric Vehicles (HEVs), while Chinese companies are focusing solely on electric vehicles (EVs).

Khan expressed hope that the local assembly and parts manufacturing for hybrid and electric vehicles would help make car prices more affordable for the general public, despite the current economic challenges. However, he pointed out that the EV market in Pakistan is still in its infancy, with its share in the overall vehicle market being negligible. The main reasons for this include high initial costs, lack of charging infrastructure, and limited consumer awareness.

The future of the automotive sector, particularly with the introduction of EVs and hybrids, remains an area of keen interest as manufacturers navigate economic challenges and adapt to evolving consumer demands.