KARACHI:
Passenger car sales soared by 51.5% to 58,266 units during the first seven months (July–January) of the current fiscal year compared to the same period last year. This surge was driven by multiple factors, including rising remittances, a buying spree at the start of the new year, and a steady decline in interest rates.
According to data released by the Pakistan Automotive Manufacturers Association (PAMA) on Tuesday, truck and bus sales saw a massive increase, with truck sales rising by 112.4% to 2,054 units and bus sales growing by 54% to 365 units. Meanwhile, sales of jeeps and pickups climbed 67.5% to 19,301 units.
Similarly, the demand for two- and three-wheelers (motorcycles and rickshaws) surged by 29.3% to 835,616 units. However, sales of farm tractors dropped by 26.5% to 20,158 units due to lower crop yields caused by climate change, making it difficult for small farmers and landlords to afford new tractors.
Speaking to The Express Tribune, auto sector analyst Mashood Khan said that aside from tractors, the overall industry showed strong growth compared to last year. He attributed the increase in car sales to two main reasons: consumers’ eagerness to buy new vehicles at the start of the year and the reduction in interest rates by the State Bank of Pakistan (SBP), which encouraged corporate purchases of new vehicles. He predicted that this positive trend would continue until June.
Khan noted that the upcoming federal budget for 2025-26 would be crucial in shaping the automotive sector, as government policies would determine the industry’s future trajectory.
Truck sales rebounded due to the revival of the construction industry, with new housing schemes and infrastructure projects being developed across the country. He suggested that the government should enforce restrictions on aging trucks (five to ten years old) operating in major cities to reduce road accidents and environmental hazards, which would also boost the trucking industry.
Regarding the bus industry, Khan emphasized the need for local assembly and manufacturing rather than relying on imports. He suggested that the government should encourage importers to establish production plants in Pakistan, which would enhance domestic sales and create export opportunities. Without such measures, bus production volumes would remain stagnant, depriving citizens of a reliable public transport system.
Motorcycle sales, he added, have been on an upward trend and could reach 1.5 million units by the end of the fiscal year. With inflation limiting car affordability, middle-class consumers are increasingly relying on motorcycles as their primary mode of transportation. This trend is expected to continue unless public transport infrastructure improves.
