Pakistan’s car market is showing clear signs of recovery. In the first seven months of fiscal year 2025 to 26, buyers purchased vehicles worth around Rs. 850 billion, reflecting a strong return in consumer demand after a slow period.
According to the Pakistan Automotive Manufacturers Association, more than 108,000 vehicles were sold between July and January. This marks about a 40 percent increase compared to the same period last year.
The rise follows months of production cuts and limited supply caused by import restrictions and currency pressure.
Industry experts say several factors helped boost sales. Car availability improved as supply chains became more stable.
Some companies also introduced updated models and flexible installment plans. Lower interest rates compared to last year encouraged more buyers to consider auto financing through banks.
Popular demand remained strong in small and mid sized cars, which are seen as more practical for daily use.
Brands such as Toyota, Honda, and Suzuki continued to dominate sales charts, though new entrants and local assemblers are slowly expanding their share.
However, the surge has also raised questions. Many analysts argue that car prices remain high compared to average incomes.
They point out that the market is still concentrated among a few major players, limiting competition and keeping prices elevated.
While the rebound signals cautious recovery in the auto sector, experts warn that long term growth will depend on stable economic policies, improved local production, and better affordability for middle income households.
