Pakistan’s automotive sector has demonstrated robust growth in the first half of the current fiscal year, with vehicle sales increasing by 46 percent compared to the same period last year, according to data from the Pakistan Automotive Manufacturers Association (PAMA).
Strong Sales Across Multiple Vehicle Segments
Total vehicle sales reached 88,322 units during this period. The Jeep and pickup category led the growth with a 58 percent rise, totaling 22,412 units sold. Truck sales more than doubled, up 106 percent to 3,071 units, while bus sales increased by 52 percent to 461 units.
Two-Wheeler Market Shows Significant Demand
The two-wheeler segment, which includes motorcycles and rickshaws, also experienced a 33 percent increase in sales, reaching 921,566 units. This reflects sustained consumer interest in affordable personal transportation options.
Tractor Sales Decline Amid Weaker Agricultural Demand
In contrast, tractor sales dropped by 26 percent to 12,929 units, indicating a slowdown in the agricultural machinery market.
Factors Driving Growth
Industry experts cite improving consumer confidence, easier access to financing, and rising demand for both personal and commercial vehicles as key contributors to the sector’s expansion. The report suggests that if supportive policies and favorable economic conditions continue, the automotive industry could maintain its positive trajectory.
Auto Financing Trends Support Industry Momentum
Data from October 2025 shows that auto financing in Pakistan rose by 33 percent year-on-year, reaching Rs315 billion compared to Rs236 billion in October 2024. Month-over-month, financing increased by 3.5 percent from Rs305 billion in September 2025.
Analysts attribute this sustained growth to significant cuts in interest rates since mid-2024. The policy rate has been reduced from 22 percent in June 2024 to 11 percent, making vehicle loans more affordable for consumers. This easing of borrowing costs has helped maintain strong demand in the automotive sector.
Government Support for the Automotive Sector
In May 2024, Prime Minister Shehbaz Sharif directed relevant authorities to implement measures aimed at supporting and expanding the country’s automotive industry, further reinforcing the sector’s growth prospects.
