KARACHI:

Pakistan's automobile industry experienced a sharp slowdown in July 2025, with sales tumbling 49% month-on-month (MoM) to 11,034 units, according to data from the Pakistan Automotive Manufacturers Association (PAMA). Despite the steep monthly decline, volumes were up 28% year-on-year (YoY) due to a low base in July 2024.

Industry experts attribute the MoM slump primarily to the high base of June 2025, when a rush of pre-buying occurred ahead of tax hikes in the FY26 federal budget. The budget introduced an Electric Vehicle (EV) adoption levy and raised the sales tax on 850cc vehicles from 12.5% to 18%, prompting customers to advance purchases before the changes took effect.

"The MoM decline is mainly attributed to the high base effect from Jun'25, when sales spiked due to a sur

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