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Pakistan’s auto industry has recorded a strong rebound during the first half of the current fiscal year (July- December FY2026), with total vehicle sales showing substantial growth across most segments, according to the Pakistan Automotive Manufacturers Association (PAMA).
Data highlights a recovery trend, signaling renewed confidence in the market, driven by lower interest rates, easing import restrictions, currency stability, and wider vehicle choices.
Key Sales Figures (1HFY26)
| Vehicle Type | Units Sold | % Change YoY | Highlights |
|---|---|---|---|
| Cars | 65,910 | +42% | Positive consumer demand |
| Jeeps & Pickups | 22,412 | +58% | Strong urban and commercial demand |
| Trucks | 3,071 | +106% | Significant industrial growth |
| Buses | 461 | +52% | School and transport segments recover |
| Motorcycles & Rickshaws | 921,566 | +32% | Major contributor to two/three-wheeler market |
| Farm Tractors | 12,929 | -26% | Decline due to subsidies & climate challenges |
Factors Behind Growth
Auto sector experts attribute the revival to a combination of economic, policy, and market factors:
- Lower interest rates: Declined from 22% in 2024 to 10.5% by December 2025, boosting consumer affordability.
- Eased import restrictions: Encouraging a wider variety of vehicles.
- OEM discounts and incentives: Attracting buyers across urban and semi-urban centers.
- Currency stability: Encouraging confidence in local purchases.
- Improved economic sentiment: Higher disposable income and growing demand for personal mobility.
Shafiq Ahmed Shaikh, an auto sector expert, said, “The data suggest a major recovery for the industry.” He added that the tractor segment’s decline is linked to a “misguided” subsidy scheme and climate-induced drops in agricultural output: “Farmers also faced rising input costs and high markup rates.”
While the overall growth signals a positive revival, the contrasting trends, booming commercial vehicles vs. declining tractors- highlight the uneven recovery across sectors. Analysts suggest that policy adjustments for agriculture and rural mobility could further accelerate the market’s growth trajectory.
