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Pakistan's automobile market recorded strong growth in FY2025-26, with passenger car sales increasing by 39% to 155,631 units, according to the latest data released by the Pakistan Automotive Manufacturers Association (PAMA). Sales of SUVs, pickups, trucks, buses, motorcycles, and rickshaws also posted healthy gains, reflecting stronger consumer demand, improved auto financing, and a wider choice of vehicle models available in the market.

What Happened?

PAMA's latest industry figures show that passenger car sales reached 155,631 units during FY2025-26, up 39% compared to the previous fiscal year.

Other vehicle segments also recorded notable growth:

SUVs, Jeeps & Pickups: 50,814 units (+41%)
Trucks & Buses: 7,439 units (+67%)
Rickshaws: 985 units (+25%)
Motorcycles & Rickshaws: 1,972,077 units (+30%)

The only segment to decline was agricultural machinery, with tractor sales slipping 1% to 28,791 units.

Industry analysts attribute the recovery to improved purchasing power among buyers, more attractive auto financing offered by banks, and an expanding lineup of petrol, hybrid, and electric vehicle models introduced by local assemblers.

Why It Matters

The latest sales figures indicate continued momentum in Pakistan's automotive sector after several challenging years.

Higher vehicle demand benefits automakers, dealerships, suppliers, and financial institutions while also encouraging manufacturers to introduce more vehicle options across different price segments.

Despite the overall growth, analysts note that motorcycle sales remain below pre-pandemic levels due to reduced purchasing power among middle-income consumers and rising transportation costs.

CarAdvisers Insight

The strong FY2025-26 sales performance highlights renewed confidence in Pakistan's automotive market. While passenger vehicles continue to benefit from financing availability and broader model choices, affordability remains a key challenge for entry-level buyers. Sustained economic stability and continued investment in mobility infrastructure will play an important role in maintaining this growth.

Stay connected with Car Advisers Blogs for trusted reviews, market intelligence, and the future of mobility in Pakistan.

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