By Pakistan’s automobile sector kicked off 2026 on a strong note, with car sales surging 35.5% year-on-year in January, according to the latest data released by the Pakistan Automotive Manufacturers Association (PAMA). Total vehicle sales reached 23,055 units, compared to 17,010 units sold in January 2025, signaling renewed momentum in the country’s auto market.
On a month-on-month basis, the growth was even more striking. Sales jumped 73.6% compared to December 2025, when 13,280 units were sold, reflecting improved buyer sentiment and seasonal recovery following year-end slowdowns.
Passenger Cars Drive Market Growth
Passenger cars were the primary force behind the surge. A total of 18,602 passenger cars were sold in January 2026, representing a 56.5% increase year-on-year and a 74.3% rise month-on-month. This sharp increase highlights growing consumer preference for personal vehicles amid evolving urban mobility needs.
In contrast, LCVs, vans, and jeeps experienced mixed performance. While sales in this category declined 13.1% compared to January 2025, they still posted a strong 70.7% increase over December 2025, indicating short-term recovery despite annual volatility.
Production Rises to Meet Demand
Vehicle production figures mirrored the strong sales trend. Overall car production increased 42% year-on-year, reaching 22,093 units in January 2026. Passenger car production rose sharply by 63.4%, reflecting manufacturers’ efforts to scale output in response to rising demand.
However, production of LCVs, vans, and jeeps declined 8.5% year-on-year, suggesting that manufacturers remain cautious in certain segments amid cost pressures and fluctuating demand patterns.
Strong Growth in FY26 So Far
Looking at cumulative performance, Pakistan’s auto industry has shown impressive resilience. During the first seven months of FY26, total car sales reached 111,368 units, marking a 43.4% increase compared to 77,645 units sold during the same period last year.
Passenger car sales totaled 84,512 units, up 44.9%, while LCVs, vans, and jeeps recorded 26,856 units, reflecting a 39.1% year-on-year increase. These figures underline sustained recovery across multiple vehicle categories.
What’s Driving the Recovery?
Industry experts attribute the growth to improving consumer confidence, relatively stable auto financing options, and rising demand for private transport. This rebound has occurred despite higher vehicle prices and broader economic challenges, highlighting pent-up demand and gradual normalization in the sector.
Market Outlook
The latest PAMA report points to a resilient and steadily recovering auto market in Pakistan. With passenger cars continuing to lead growth and production ramping up accordingly, the sector appears well-positioned for sustained expansion if economic stability and financing conditions remain supportive.
