Car sales in Pakistan jump 46% in first four months of FY2025-26

KARACHI: Car sales in Pakistan rose 46% during the first four months of the current fiscal year (July–October FY26), driven by improved economic sentiment, a stable rupee, and the launch of new models and variants in the local market.

Car sales (including jeeps and pick-ups) stood at 59,600 units in Jul-Oct FY26, against 40,693 units in the same period last year.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA) on Tuesday, sales of all vehicles, including two-, three-, and four-wheelers, increased, while sales of farm tractors declined.

Pakistan car sales jump 67% YoY to 17,174 units in Sept 2025

Sales of jeeps-cum-pickups went up by 67% to 16,769 units. Sales of trucks and buses rose by 115% to 2,308 units and by 59% to 322 units, respectively. Sales of motorcycles and rickshaws also surged by 30% to 597,025 units. Meanwhile, sales of farm tractors decreased by 15% to 5,867 units.

Talking to Business Recorder, auto sector analyst Muhammad Sabir Shaikh said the auto industry fell prey to a downfall soon after the Covid-19 pandemic as it had to face tough years from 2022 till first quarter of 2025.

“However, it is now growing and it will gain more and more momentum in years to come.”

Shaikh said car enthusiasts have resumed changing their vehicles every three to four years - a trend that had faded after the Covid-19 pandemic amid a severe economic downturn. He added that improving economic conditions and a stable rupee against the US dollar have helped revive consumer confidence in the auto market.

Talking about rising motorcycle sales, Shaikh said, “the life of a motorbike lasts for around five years and people are purchasing new motorbikes as well as Chinese motorbikes are on a rise in a market due to a cheaper price in comparison with Japanese motorcycles”.

Regarding a decline in the farm tractor sales, he said tractor manufacturers are unwilling to produce tractors because of imposition of 18% sales tax during more than one-and-half years, while sales tax was exempted in the past and when sales of tractors were gaining momentum.