Pakistan’s automobile industry posted a strong recovery during the fiscal year 2025-26, with car sales rising by 39 percent to 155,631 units, it was reported on Tuesday.
According to the latest report released by the Pakistan Automotive Manufacturers Association (PAMA), the overall improvement in vehicle sales reflects growing consumer confidence, stronger purchasing power, improved access to auto financing, and the introduction of new vehicle models by automakers.
Sales of motorcycles and rickshaws also recorded significant growth during the fiscal year, increasing by 30 percent to 1,972,077 units, highlighting sustained demand in the two- and three-wheeler segments.
Similarly, sales of SUVs, jeeps, and pickup vehicles climbed 41 percent to 50,814 units, indicating rising demand for larger passenger and commercial vehicles.
The commercial vehicle segment witnessed the strongest growth, with truck and bus sales surging 67 percent year-on-year to 7,439 units, reflecting improving business activity and higher transportation demand.
Industry experts attribute the strong performance of Pakistan’s auto sector to an improvement in consumers’ purchasing power, easier availability of bank-backed auto financing, and the launch of several new vehicle models, which encouraged buyers to return to the market.
In contrast, the agricultural machinery segment remained under pressure. According to the PAMA report, tractor sales declined by 1 percent during FY2025-26 to 28,791 units.
Analysts believe the marginal decline in tractor sales reflects weak profitability in the agricultural sector, prompting farmers to delay fresh investments in machinery over the past few years.
