Islamabad: Pakistan’s automotive industry experienced a significant boost in July 2025, with sales volumes rising 22% year-on-year to reach 12,603 units. This growth was primarily driven by a 28% year-on-year increase in passenger cars and light commercial vehicles. Truck sales also contributed, exhibiting a 26% year-on-year rise.

Passenger cars with engine capacities of 1,000cc and above led the market surge, registering sales of 4,290 units, a remarkable 74% increase compared to July 2024. This surge was primarily attributed to the strong performance of models like Corolla, Yaris, and Corolla Cross. The 800-1,000cc segment also witnessed growth, with sales reaching 264 units, a 12% year-on-year uptick.

Analysts predict sustained growth in the automotive sector, forecasting a 22% expansion in fiscal year 2026 and a 20% increase in fiscal year 2027. Investment firm AKD Securities highlights Indus Motor Company (INDU) as a top pick, setting a target price of PkR3,585 per share by June 2026. They anticipate INDU capturing a substantial share of the hybrid electric vehicle (HEV) market in the coming years.