Car sales in Pakistan increased by 43% year-on-year (YoY) to 111,377 units in the first seven months of the fiscal year 2025-26 (FY26), showed Pakistan Automotive Manufacturers Association (PAMA) on Tuesday.
Car sales (including LCVs, Vans, and Jeeps) stood at 77,686 units in 7MFY25.
In January 2026, car sales in Pakistan clocked in at 23,055 units, marking a 43-month high, reflecting a 36% YoY and 74% MoM increase.
“There are two reasons for the increase in sales of all vehicles; a decrease in interest rate set by the State Bank of Pakistan (SBP) and light-and-small industry improved performance following a boost in auto sales,” auto analyst Mashood Khan said.
“If better financing policy including a further fall in the interest rate was formed, auto sales could skyrocket to 250,000 units in the coming year,” he maintained.
Car sales in Pakistan are likely to touch 170,00o-180,000 units in the current fiscal year.
Also read: Localisation key to making cars affordable for Pakistan’s middle class: experts
“Car sale benchmark touched almost 230,000 in 2021-2022, while cars were sold in more than 230,000 units in 2017-2018. The sales still lagged behind those past figures, but this augurs well that the sales are gaining momentum in comparison with the last year,” he said.
PAMA data showed massive increases in the sales of overall all two-three-and-four wheelers.
Sales of trucks and buses soared by 91% to 4,633 units. Motorcycles and rickshaws also increased by 32% to 1,103,356 units.
However, sales of farm tractors slid by 23% to 15,434 units.
Car and motorcycle expert Muhammad Sabir Shaikh said there was a five-year gap after the Covid-19 pandemic when people avoided purchasing new vehicles or changing old cars due to poor economic conditions.
“Now, with better economic conditions, people are buying new vehicles and changing old cars. People are turning to new purchases, which are boosting sales for a couple of months in the country.
“Sales of both two, three, and four wheelers are skyrocketing as the PAMA shared data of a few brands which are its members only. Around 30-40% data of vehicles are missing as PAMA can collect the data from other brands in a local market with the help of the Engineering Development Board (EDB),” Shaikh maintained.
“When it comes to the increase of EV (electric vehicles) motorbikes and rickshaws, they could not pick up momentum as per expectation of their surge in 2026 as models of EV bikes are not being finalised or set. That is why people are not switching over to EV bikes, while EV bike trend are surging in Punjab because of robust support of Punjab government due to rising smog in cities in Punjab.”
Another expert Shafiq Ahmed Shaikh said the automotive sector had entered a major recovery phase in Q3 of FY2026.
“January figures demonstrate an aggressive expansion across nearly all segments, driven by a sharp decline in the central bank’s policy rate to 10.5% (down from 22% in 2024). This is reflected in the near doubling of truck production and sales, indicating a surge in industrial logistics and fixed investment. Heavy vehicle demand is being fueled by fleet renewals as businesses capitalise on cheaper financing.”
Car sales (as reported by PAMA) in Pakistan clocked in at 23,055 units in January 2026, marking a 43-month high, reflecting a 36% YoY and 74% MoM increase.
Also read: Pakistan auto sales jump 42% in 1HFY26
Shafiq said passenger cars and 2/3 wheelers had also grown, with lower interest rates and interest free instalment schemes, which he believes revitalised auto financing and released significant pent-up demand for both entry-level and premium vehicles.
About the decline in the sale of farm tractors, he said the slump could be attributed to farm economics specifically a drop in certain commodity prices, rising input costs for fertiliser and fuel, and reduced rural disposable income.
“In my view, some incentives should be given to the agricultural sector, otherwise a prolonged tractor slump may eventually impact wider rural development and the economy,” Shafiq said.
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