Pakistan’s auto sector has shown a strong recovery, with car sales growing significantly during the first five months of the current fiscal year (July to November FY2025-26).
Rising new purchases, improved economic confidence, and the launch of new models have played a major role in boosting demand.
According to data released by the Pakistan Automotive Manufacturers Association (PAMA), car sales (excluding jeeps and pickups) increased by 43% to 55,239 units in 5MFY26 compared to 38,597 units during the same period last year.
Experts say the steady rise in monthly sales reflects clear improvement in the auto market.
Automobile analyst Shafiq Ahmed Shaikh said that positive economic sentiment, supportive government policies, easier access to financing, and major price reductions by Original Equipment Manufacturers (OEMs) have encouraged people to return to the market. He added that the introduction of new car models has also attracted buyers.
In November alone, car sales reached 12,408 units, showing a rise of more than 50% compared to the same month last year, although sales were down 8% on a monthly basis. Analysts noted that such month-to-month dips are normal due to seasonal factors.
Auto expert Muhammad Sabir Shaikh added that buyers are upgrading cars more frequently.
He said a major policy shift is expected in the next few years as electric motorbikes and cars gain popularity while fuel-driven vehicles will slowly decline due to pollution-related government initiatives.
Other segments also performed well: sales of jeeps and pickups rose 62%, trucks increased 101%, buses grew 72%, and motorcycles and rickshaws climbed 32%.
However, tractor sales fell because farmers showed little interest due to lower agricultural output linked to climate change.