Pakistan Automobile Industries

Auto sales rise 43pc in July-February​

Aamir Shafaat Khan
March 11, 2026

KARACHI: As the tractor sector continues to struggle, sales of cars, sport utility vehicles, pickups, and vans reached 17,121 units in February, showing a 42 per cent increase year-on-year (YoY) but a 26pc decrease month-on-month (MoM).

This took 8MFY26 cumulative sales to 128,498 units, up 43pc YoY from 89,770 units in 8MFY25.

The sharp MoM decline is mainly due to a high base effect, as January sales usually increase because of new-year vehicle registrations, combined with fewer working days in February.

Meanwhile, the strong YoY growth was supported by new market entrants, lower interest rates, easing inflation, and improving macroeconomic sentiment, Myesha Sohail of Topline Securities said.
 

Auto surplus drives export urgency​


500,000 units, 40% tariffs, supply chain gaps weaken demand, competitiveness

Usman Hanif
March 29, 2026

tribune


KARACHI: Pakistan has long advocated a shift towards private investment over public spending, in line with International Monetary Fund (IMF)-backed reforms since 1988. However, the country remains caught in a persistent cycle, as the private sector continues to demand key prerequisites, including security, a simplified regulatory framework and a lower cost of doing business, conditions that Pakistan has struggled to provide.

Despite this, in a rare development, the automobile sector is showing signs of capacity expansion, with installed capacity nearing 500,000 units, almost double the size of domestic demand.

While this creates an opportunity to tap export markets, industry stakeholders warn that deep-rooted structural weaknesses continue to undermine competitiveness, raising concerns about the sustainability of this growth.

Commenting on the current market scenario in a conversation with The Express Tribune, Toyota Indus Motor Chief Executive Officer Ali Asghar Jamali said, "We have the will and the capacity to manufacture vehicles that meet the standards of export markets, but achieving this requires a policy environment that encourages the development of raw material industries."

Trade barriers remain the biggest constraint on export prospects, as many potential destinations impose tariffs ranging from 10% to nearly 40%, putting Pakistani vehicles at a price disadvantage from the outset.

Meanwhile, regional competitors such as China, India and Thailand benefit from inclusive trade blocs and free trade arrangements that significantly reduce export costs.
 

Pakistan eyes major boost in tyre exports as Chinese-backed Service Long March Tyres announces $120 million investment​


Company targets $70 million exports by June 2026, aims to cross $100 million next year
By
News Desk


Service Long March Tyres (Private) Limited has announced an additional investment of $120 million in Pakistan, reaffirming its confidence in the country’s industrial and economic potential.


Federal Minister for Commerce Jam Kamal Khan held a detailed meeting with Mr Jin Yongsheng, Chairman of Service Long March Tyres (Private) Limited, and his delegation on Thursday to discuss investment expansion, export growth, and tariff policy support for Pakistan’s tyre industry.

During the discussion, the company announced an additional investment of $120 million in Pakistan, reaffirming its confidence in the country’s industrial and economic potential. The delegation shared that the company is on track to achieve exports of $70 million by June 2026 and is aiming to cross $100 million in exports in the following financial year, a milestone that would place it among Pakistan’s leading non-textile exporters within a short span of operations.

The meeting was informed that Pakistan has made significant progress in global tyre markets, with exports to the United States and Brazil increasing rapidly. The country has emerged as the fifth-largest exporter of tyres to the United States and the seventh-largest to Brazil, marking a notable shift from virtually no presence in these markets just a few years ago. This growth has largely been attributed to the transfer of technology and expertise through collaboration with Chinese partners, which has enabled local manufacturing to meet international standards and compete globally.

Federal Minister Jam Kamal Khan acknowledged the concerns raised by the industry and reiterated the government’s commitment to supporting sectors that demonstrate strong performance and export potential. He emphasised the importance of maintaining a balanced tariff policy that encourages local production while ensuring competitiveness.


The minister noted that the government is working towards diversifying Pakistan’s industrial base by promoting emerging industries with high growth potential.

The delegation also highlighted the importance of the Pakistan-China industrial partnership, describing it as a key driver behind the rapid growth of the tyre sector. The company’s manufacturing facility in Nooriabad was cited as a modern and efficient industrial unit employing around 2,000 workers and incorporating renewable energy solutions, making it one of the more sustainable production facilities in the region.

Both sides agreed on the need to strengthen collaboration between the government and industry to support export-oriented growth and industrial expansion. The minister underscored that Pakistan must focus on diversification and leverage international partnerships to enhance its manufacturing capabilities and global competitiveness.

The investors expressed confidence in Pakistan’s economic outlook despite current global challenges and appreciated the government’s continued engagement with the business community.

The meeting concluded with a shared resolve to promote policy stability, encourage investment, and position Pakistan as a competitive hub for manufacturing and exports in emerging sectors such as tyres.
 
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