Pakistan auto sales jump 42% in 1HFY26

KARACHI:  Auto sales have continued their positive momentum, registering an increase of 42% during the first six months of the current fiscal year (July to December FY2026) in Pakistan.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA), sales of cars rose by 42% to 65,910 units during the six-month period.

Sales of jeeps and pickups increased by 58% to 22,412 units. Whereas, sales of trucks and buses jumped by 106% and 52%, clocking in at 3,071 units and 461 units, respectively.

Motorcycles and rickshaws sales also surged by 32% reaching 921,566 units.

On the other hand, sales of farm tractors registered a decline of 26%, dropping to 12,929 units, during the six-month period.

Shafiq Ahmed Shaikh, an auto sector expert, said that the data suggest a “major recovery” for the industry.

Pakistan car sales jump 43% in first five months of FY2025-26

The expert attributed the growth to a number of factors, including a decline in interest rate, which reduced from 22% in 2024 to 10.5% by December 2025; removal of previous import curbs; discounts and incentives announced by Original Equipment Manufacturers (OEMs); improved economic sentiments and a wider variety of vehicles available in the local market.

Shaikh said that the currency stability is also driving the trend.

Meanwhile, he attributed the decline in tractor production to a “misguided” subsidy scheme and a significant fall in agricultural output due to climate change.

“Farmers also faced rising input costs and high markup rates,” he said.

Auto analyst Mashood Khan was optimistic that the trend would continue in the coming days, citing improved policies. “The government is taking better initiatives to bolster up the SME sector,” he maintained.