Passenger Car Sales Soar 32.1% in Pakistan During FY24-25

Passenger car sales in Pakistan surged by 32.1% to 94,388 units during the first 11 months of the current fiscal year, compared to the same period last year. This growth in passenger car sales is attributed to several factors, including a sharp decline in interest rates, back-to-back Eid festivals, expected price hikes before Budget 2025-26, and improved law and order.

According to the Pakistan Automotive Manufacturers Association (PAMA), overall vehicle sales across categories—two-, three-, and four-wheelers—rose significantly, except for farm tractors, which recorded a notable decline.

Sales of jeeps and pickups jumped by 66% to 31,706 units, while trucks and buses experienced a robust growth of 95.7% and 73.3%, reaching 3,776 and 719 units, respectively. Additionally, sales of motorcycles and rickshaws climbed by 30% to 1,378,131 units.

However, the agriculture segment showed weakness as farm tractor sales plummeted by 36.8% to 26,401 units.

Auto Industry Gaining Momentum

Automobile expert Shafiq Ahmed Shaikh noted that aside from tractors, the auto industry is gaining momentum, signaling a revival. He highlighted four reasons for this trend: lower interest rates leading to attractive instalment plans, pre-budget anticipation of car price increases, Eid-driven purchases, and improved security conditions that have encouraged consumer spending.

He added that passenger car sales are expected to face future competition from electric vehicles (EVs), urging readiness for a shift in market dynamics.

Auto analyst Mashood Khan echoed these views, saying that except for tractors, all segments showed strong performance. He emphasized that motorcycle demand remained resilient due to affordability for the middle class.