Pakistani Vehicles Market in 2025 is still expanding. YTD sales up to November rose by 40.8%, with all leading brands reporting double-digit gains, but Toyota and Haval posting the most significant growth. EVs struggle to scale up, with only Daehan reporting some sales.
Economic Environment
In fiscal year 2025, Pakistan’s economy is projected to grow by 2.7%, slightly above the 2.5% growth recorded in the previous year but below the original 3.6% target. The government lowered its forecast last month, aligning closely with the IMF’s projection of 2.6% for the year and 3.6% for the next. Growth was constrained by weak large-scale manufacturing output and the worst agricultural growth in nine years at just 0.6%, due to adverse weather. Finance Minister Muhammad Aurangzeb cautioned against rapid, consumption-led growth, emphasizing the risks of rising imports and balance of payments issues. Despite modest GDP growth, total government revenue rose by nearly 37% year-on-year in the first three quarters, reaching 13.37 trillion rupees.
Pakistan also posted a $1.9 billion current account surplus during that period, a significant improvement from the previous year’s deficit. The central bank cut its policy rate by over 1,000 basis points this year to 11%, aiming to stimulate growth. Inflation was contained at 4.6%, while the fiscal deficit stood at 2.6% of GDP through three quarters. As the government prepares to unveil its 2026 budget, it targets 4.2% growth for the coming year. However, the economy remains fragile as reforms continue under a $7 billion IMF programme.
Automotive Industry Trend and Outlook
After an impressive performance in Q1, the Pakistani vehicle market extends its growth streak. Looking at YTD data up to November 2025, it totaled 160,781 units, up by 40.8%.
Brand-wise, the leader was still Suzuki which secured a share of 46.5% and grew 28.3%, followed by Toyota (+59.9%) and Honda (+49%). Haval -up 1 spot- followed in 4th (+53.4%) while Hyundai ranked 5th, growing by 41.8%.
Looking at specific models the Suzuki Alto was the best seller with a 24.1% year-on-year gain in volume, followed by the Toyota Corolla up 55.5%.
EV Market Trend and Outlook
Despite the policies implemented by the government to encourage EV adoption as part of the National Electric Vehicle Policy and the AIDEP, the Pakistan EV sector still lags behind regional competitors.
Daehan remains the only brand to report a significant, though limited, number of EV sales.
Medium-Term Market Trend
The Pakistani automotive market has long been dominated by Japanese manufacturers, particularly Toyota, Suzuki, and Honda, which have established a strong presence through local assembly and extensive dealership networks. Starting at 141,306 units in 2014, the market experienced significant growth, reaching a decade-high of 254,840 units in 2018, an increase of nearly 80%. This expansion was driven by rising consumer incomes, increased availability of auto financing, and favorable government policies that encouraged local manufacturing and investment.
The COVID-19 pandemic in 2020 led to a sharp decline in vehicle sales, with a 33.9% drop. However, the market rebounded swiftly in 2021, registering a 91.4% increase to 236,078 units, as economic activities resumed and consumer confidence returned. In 2023, the market faced another downturn, plummeting by 63.7% to a decade-low of 81,587 units. This decline was attributed to a combination of factors, including restrictions on the import of completely knocked down (CKD) kits, high car prices, increased auto financing costs, and reduced purchasing power among consumers
The market began to recover in 2024, with a 52% increase in sales, reaching 123,982 units. This resurgence was supported by government interventions such as easing import restrictions on CKD kits and reducing interest rates, which made auto financing more accessible . These measures helped restore consumer confidence and stimulated demand in the automotive sector
Tables with sales figures
In the tables below we report sales for all Brands, top 5 Manufacturers Group and top 10 Models.
