Pakistan’s Auto Sector Accelerates: Car Sales Surge 46% in First Four Months of FY26
Karachi Pakistan’s automotive market demonstrated robust recovery with car sales, including jeeps and pick-ups, jumping 46% year-on-year to 59,600 units during July-October FY26, fueled by stabilizing economic conditions, a steadier Pakistani rupee, and the introduction of fresh models.Data released Tuesday by the Pakistan Automotive Manufacturers Association (PAMA) revealed a broad uptick across vehicle categories. Total sales of all vehicles—encompassing two-, three-, and four-wheelers—also climbed, though farm tractor volumes dipped.In September 2025 alone, jeep and pick-up sales rocketed 67% year-on-year to 17,174 units. Trucks and buses posted even steeper gains, rising 115% to 2,308 units and 59% to 322 units, respectively. Motorcycle and rickshaw sales accelerated 30% to 597,025 units, reflecting renewed consumer appetite.Auto sector analyst Muhammad Sabir Shaikh, speaking to Business Recorder, attributed the resurgence to post-pandemic normalization. “The industry endured a steep decline from 2022 through the first quarter of 2025, but it’s now building momentum,” he said. Shaikh highlighted how improved economic sentiment and rupee stability have restored buyer confidence, encouraging consumers to upgrade vehicles every three to four years—a habit disrupted by the Covid-19 fallout.The analyst also pointed to the influx of affordable Chinese motorcycles challenging pricier Japanese rivals, boosting two-wheeler demand. However, farm tractor sales fell 15% to 5,867 units, hampered by an 18% sales tax reimposed over the past 18 months, which had previously been waived to spur agricultural mechanization.Industry observers anticipate sustained growth, provided macroeconomic stability persists, positioning Pakistan’s auto sector for further expansion in the coming fiscal year.
