Pakistan’s automotive industry hits high gear with 46% sales growth

KARACHI: Pakistan’s automotive industry has recorded a strong recovery in the first six months of the current fiscal year, with vehicle sales surging by 46 percent compared to the same period last year, according to a report released by the Pakistan Automotive Manufacturers Association (PAMA).

During this period, total vehicle sales reached 88,322 units. The automotive industry’s growth was especially notable in the Jeep and pickup segment, which saw a 58 percent increase, totaling 22,412 units sold. Truck sales more than doubled, rising 106 percent to 3,071 units, while bus sales also climbed 52 percent to 461 units.

The two-wheeler segment in Pakistan, including motorcycles and rickshaws, showed significant demand as well, with sales increasing 33 percent to reach 921,566 units.

However, not all sectors performed strongly. Tractor sales fell by 26 percent, dropping to 12,929 units, reflecting weaker demand in the agricultural machinery market in Pakistan.

Industry experts attribute the overall growth to improving consumer confidence, easier financing options, and increased demand for both personal and commercial vehicles.

The report highlights a positive outlook for Pakistan’s automotive sector, signaling a potential continuation of growth if supportive policies and economic conditions persist.

Auto Financing In Pakistan Rises 33 Percent YoY In October 2025

Earlier, Pakistan’s auto sector continued its upward momentum in October 2025, with auto financing surging 33 percent year-on-year, according to banking data.

The total volume of auto loans reached Rs315 billion in October, compared to Rs236 billion in the same month last year, reflecting strong consumer demand and improved loan affordability.

On a month-to-month basis, the upward trend also remained intact. Auto financing increased 3.5 percent compared with September 2025, when the total stood at Rs305 billion.

Industry analysts attribute this continued growth to the sharp reduction in interest rates since mid-2024. In June 2024, the policy rate stood at 22 percent, but successive cuts have brought it down to 11 percent, significantly easing the cost of borrowing for vehicle buyers.

Bankers say the sector has been witnessing consistent momentum ever since the interest-rate decline began, with monthly demand strengthening as financing becomes more accessible for consumers.

In May 2024, Prime Minister Shehbaz Sharif ordered authorities concerned to implement a deletion policy to foster the country’s auto sector.