Auto sales soar to 43-month high, reflecting a 36% YoY and 74% MoM increase

Car sales in Pakistan increased by 43% year-on-year (YoY) to 111,377 units in the first seven months of the fiscal year 2025-26 (FY26), showed Pakistan Automotive Manufacturers Association (PAMA) on Tuesday.

Car sales (including LCVs, Vans, and Jeeps) stood at 77,686 units in 7MFY25.

In January 2026, car sales in Pakistan clocked in at 23,055 units, marking a 43-month high, reflecting a 36% YoY and 74% MoM increase.

“There are two reasons for the increase in sales of all vehicles; a decrease in interest rate set by the State Bank of Pakistan (SBP) and light-and-small industry improved performance following a boost in auto sales,” auto analyst Mashood Khan said.

“If better financing policy including a further fall in the interest rate was formed, auto sales could skyrocket to 250,000 units in the coming year,” he maintained.

Car sales in Pakistan are likely to touch 170,00o-180,000 units in the current fiscal year.

“Car sale benchmark touched almost 230,000 in 2021-2022, while cars were sold in more than 230,000 units in 2017-2018. The sales still lagged behind those past figures, but this augurs well that the sales are gaining momentum in comparison with the last year,” he said.

PAMA data showed massive increases in the sales of overall all two-three-and-four wheelers.

Sales of trucks and buses soared by 91% to 4,633 units. Motorcycles and rickshaws also increased by 32% to 1,103,356 units.

However, sales of farm tractors slid by 23% to 15,434 units.

Car and motorcycle expert Muhammad Sabir Shaikh said there was a five-year gap after the Covid-19 pandemic when people avoided purchasing new vehicles or changing old cars due to poor economic conditions.

“Now, with better economic conditions, people are buying new vehicles and changing old cars. People are turning to new purchases, which are boosting sales for a couple of months in the country.