Karachi: Automobile sales in May 2025 are projected to reach their highest levels since December 2022, with three major players—Indus Motors Company Ltd (INDU), Honda Atlas Cars Ltd (HCAR), and Pak Suzuki Motor Company Ltd—leading a significant volumetric growth of 44% year-over-year and 49% month-over-month. This surge is expected to result in approximately 13,300 units sold, according to a report by JS Global.

INDU and HCAR are anticipated to drive the monthly growth, with volumes rising by 2.4 times and 69% year-over-year, respectively. The month-over-month increase of 49% is primarily attributed to delivery delays caused by protests on highways over canal projects.

Overall, the sample indicates a robust 38% year-over-year growth for the first 11 months of fiscal year 2025. However, the outlook for fiscal year 2026 is less certain. Key risks include a potential carbon tax on petrol vehicles, reduced tariffs on imported cars, an extension of the used car import age limit from three to five years, and higher sales tax on vehicles up to 800cc, all of which could significantly affect industry sales.