Car sales in Pakistan rose sharply by 45% during the first nine months of FY2025–26 (July–March), with Internal Combustion Engine (ICE) vehicles continuing to dominate despite government efforts to promote electric vehicles (EVs).
According to data from the Pakistan Automotive Manufacturers Association, sales increased across two-, three-, and four-wheeler segments, while farm tractor sales continued their downward trend.
Passenger car sales (excluding LCVs, vans, and jeeps) climbed 45% to 109,655 units, compared to 75,397 units in the same period last year.
Sales of jeeps and pickups rose 35% to 34,374 units. Truck and bus sales also saw significant growth, increasing by 82% to 5,143 units and 33% to 720 units, respectively. Meanwhile, motorcycles and rickshaws recorded a 31% rise, reaching 1,429,501 units.
In contrast, farm tractor sales dropped 13% to 20,292 units, largely attributed to climate-related impacts and reduced agricultural output.
Automobile expert Shafiq Ahmed Shaikh said the strong recovery in the auto sector reflects improving macroeconomic conditions.
“In my opinion, despite the emergence of EVs, ICE vehicles continue to dominate production and sales in Pakistan. The ICE industry has seen a massive rebound, with passenger car sales jumping by 45% and production rising by 51%. This surge is largely attributed to a more stable macroeconomic environment by this government and a significant decrease in interest rates, which has revived bank financing and corporate auto leasing”.
He added that the recovery was led by the trucks and buses segment, where production and sales surged by 88% and 82%, respectively, indicating stronger logistics demand and economic activity. Jeep sales also rose 35%, driven by increasing consumer preference for SUVs and utility vehicles.
Shaikh noted that the 31% growth in two- and three-wheelers highlights continued reliance on conventional personal transport among the mass market.
“Whereas farm tractors are the only segment to decline (-13%), primarily due to declining of farm economics and lower crop prices due to current war between three countries, as exports are almost not happening,” he said.
On market dynamics, he stressed that ICE vehicles remain more appealing due to affordability and convenience.
“Furthermore, ICE vehicles offer ‘refuel and go’ convenience, whereas Pakistan’s charging network is very less in numbers, remains in its infancy, and is concentrated only in major cities.
“Resale value is another critical factor. In Pakistan, a car is considered a liquid financial asset with an established secondary market. In contrast, EV resale values remain uncertain, with early data from 2025–2026 suggesting some models lose 15–25% of their value within 18 months due to buyer skepticism regarding battery degradation and range anxiety.”
He also pointed out that maintenance infrastructure favors traditional vehicles.
“While any roadside and local mechanic can fix an ICE engine, EVs require specialised workshops, trained mechanics and imported parts their parts prices are currently scarce and expensive.”
