Pakistan’s automobile industry recorded a strong recovery in fiscal year 2025-26 as lower interest rates, easing inflation and better auto financing encouraged more people to buy vehicles.
According to data from the Pakistan Automotive Manufacturers Association (PAMA), sales of cars, light commercial vehicles, vans, jeeps and pickups increased 39% year-on-year to 206,445 units.
Passenger car sales reached 155,631 units, up 39% from the previous year. Sales of jeeps, SUVs, pickups and vans also increased 41% to 50,814 units. Truck sales rose 67% to 7,439 units, while bus sales increased 25% to 985 units.
The recovery was also visible in the two-wheeler market. Motorcycle and three-wheeler sales reached a record 1.97 million units during FY26, showing a 30% increase from the previous year. This helped push total vehicle sales across major categories above 2.2 million units.
Analysts link the growth to lower borrowing costs, improved consumer demand and the launch of new vehicle models. June sales also received support from buyers bringing purchases forward before expected tax and duty changes in the new budget.
However, the industry still faces challenges. Changes in taxes, tariffs and government policy could affect vehicle prices, investment and sales growth in FY27.
