Pakistan’s automobile industry closed fiscal year 2025-26 on a positive note. Sales of passenger cars, SUVs and light commercial vehicles (LCVs) rose 39 percent year-on-year to 206,445 units, according to data from the Pakistan Automotive Manufacturers Association (PAMA).
This was a clear recovery from the previous year. Total industry sales, including motorcycles, three-wheelers, tractors and commercial vehicles, crossed 2.2 million units and grew about 30 percent.
Several factors helped demand return. Inflation eased, interest rates fell, and auto financing improved sharply. Consumer auto loans reached a record Rs 369 billion by May 2026, up 36 percent from a year earlier. New vehicle launches and more brand options also brought buyers back to showrooms.
Pak Suzuki remained the market leader. Its sales rose 34 percent to more than 97,000 units, with the Alto alone accounting for around 62,000 units. This showed that affordable, small cars still dominate the mass market. At the same time, SUVs and crossovers gained ground. Sazgar Engineering, which sells Haval and other models, saw four-wheeler sales jump 77 percent to over 19,000 units.
While most segments improved, tractor sales fell slightly by 1 percent. Industry observers note that the recovery looks different from the past, with Chinese-linked brands and SUVs taking a larger share.
Despite the strong finish to FY26, experts warn that policy uncertainty, high taxes and tariff decisions could slow growth and investment in the coming year. For now, however, lower borrowing costs and better economic conditions have given the auto sector a solid boost.