Passenger car sales in Pakistan have witnessed a 44.6% increase, reaching 67,135 units in the first eight months of the current fiscal year compared to the same period last year. This surge is attributed to improved buyer sentiment post-COVID-19, the launch of new car models, corporate purchases, rising prices of used cars, and concerns over the durability of older vehicles.
According to Pakistan Automotive Manufacturers Association (PAMA) data, overall vehicle sales, including two-, three-, and four-wheelers, saw a sharp increase. However, the tractor industry struggled, with sales dropping 30% to 21,692 units due to crop losses and financial hardships faced by growers.
Sales of jeeps and pickups jumped 69% to 22,503 units, while truck and bus sales rose by 96.7% (2,470 units) and 45% (435 units), respectively. Meanwhile, motorcycle and rickshaw sales surged 30% to 962,315 units.
Industry experts highlight that lower interest rates (12%), corporate sector demand, and consumer preference for new cars over expensive used vehicles have driven the market uptrend. However, concerns over the rupee’s volatility against the US dollar remain.
Auto analyst Mashood Khan predicts continued growth in vehicle sales—except for tractors—until June 2025, but stresses that the upcoming federal budget 2025-26 will be crucial in shaping industry policies. He urges policymakers to introduce incentives for local vehicle manufacturing, making cars more affordable for the middle class, which currently relies on motorbikes due to high car prices.
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