Pakistan Automobile Industries

Pakistan car sales jump 45% in July-March FY26​

  • Tractor sales continue to decline
Gohar Ali Khan
April 13, 2026
Car sales in Pakistan have continued to rise by 45% during the first nine months of the current fiscal year (July to March FY 2025-26) as Internal Combustion Engine (ICE) vehicles still prevail over Electric Vehicles (EVs) despite the government’s support towards emerging EV industry.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA), there was a substantial rise in the sales of all two-three-and-four wheelers, while the sales of farm tractors continued to decrease as usual for several months.

Car sales in Pakistan (excluding LCVs, Vans, and Jeeps) increased by 45% to 109,655 units in July-March FY26, as compared to the 75,397 units sold in the same period the previous year.

Sales of jeeps and pickups rose by 35% to 34,374 units. Sales of trucks and buses went up by 82% to 5,143 units and by 33% to 720 units, respectively. Motorcycles and rickshaws also increased by 31% to 1,429,501 units.

Moreover, sales of farm tractors fell by 13% to 20,292 units because of climate change following losses of crop output.
 
Fatman17 said:
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Auto financing rises to Rs345bn

Some auto analysts predict positive momentum in auto sales during 2026, supported by lower interest rates.
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Auto financing rises to PKR 345b
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It will increase way more if they bring the auto interest rates down, right now it's around 12% or more, you cannot finance more than 3 million, that makes almost majority of the vehicles out of reach for a common person.

Honda, Toyota, Suzuki and all others have started offering 0% markup plans for 2-3 years but realistically if someone had 200-300k/month saving kitty to give for auto loan than he/she already is in a position to buy a good vehicle (debatable)
 

New auto assemblers dodge localisation details​

Aamir Shafaat Khan
April 26, 2026

• CKD imports surge to $1.47bn in 9MFY26
• Vendors slam low local parts use

KARACHI: New auto players appear reluctant to share the localisation in their vehicle assembly operations, while local vendors continue to complain about the negligible localisation by the new entrants.

As the current auto policy is expiring on June 30, vendors claim that the new entrants have not given any clear signal about future local assembly of parts, while some big vendors might have inked deals with them to assemble a few parts. Some assemblers already have parts-making factories, utilise their parts for their own vehicles, and sell parts to other assemblers.

According to official data, imports of semi- and completely knocked-down (SKD/CKD) components by assemblers have surged by 116 per cent to $1.47bn in 9MFY26 year on year (YoY), while the import bill for auto accessories from FY22 to 9MFY26 has crossed $6bn, suggesting lukewarm efforts towards higher localisation.
 
An executive in Lucky Motor Corporation (LMC), said the company has localised wiring harness, seats, bumpers, grills, mufflers, battery, carpets, instrument panel reinforcement, AV Panels, HVAC Assy, Door trims, Rims and so many other parts which are feasible.

“Kia Sportage’s localisation is up to 35pc, and we are slowly targeting 40pc plus, while localisation in Picanto stands at 40pc,” he said.

Many vendors quote higher prices than those for imported parts, while some vendors ask assemblers to invest in tooling, which is also not possible, the executive said.

On the rising import bill of CKD/SKD kits, he said that it seems that assemblers have been trying to bring the kits and accessories in larger volumes before the new budget, fearing any changes in case the Middle East war prolongs and pressure on foreign exchange increases, resulting in suspension of opening LCs to curb dollar outflow.
 
Localisation of parts in Japanese assembled cars ranges between 50-70pc but vendors believe that local parts in new models are less than 50pc.

Auto sector expert, Mashood Ali Khan, claimed that vendors are not getting the required orders from the new entrants for parts making.

The auto sector, instead of evolving into a localised manufacturing base, is increasingly shifting toward an assembly-driven model.

Rising consumer demand for hybrid electric vehicles (HEVs), plug-in hybrids (PHEVs), and battery electric vehicles (BEVs) — estimated at 35,000 to 40,000 units annually — is largely being met through imported CKD/SKD kits, restricting the growth potential of Pakistan’s industrial ecosystem, particularly SMEs.
 

According to AI:​


Strategic Tariff and Duty Realignment​

  • Create a Defendable Tariff Spread: Enforce a minimum 40% duty differential between CBU imports and locally assembled CKDs to make domestic assembly economically competitive.

🎯 Enforce Mandatory, Time-Bound Localisation Targets​

  • Implement a Phased Local Content Schedule: Mandate minimum local content of 50% by the third year of market entry and 70% by the fifth year for all vehicle models sold in Pakistan.
  • Detail Annual Milestones: Establish annual, granular localisation targets with automatic, non-lenient penalties for non-compliance, including suspension of manufacturing licenses or loss of import concessions.
  • Disallow "New Model" Resets: Stipulate that the introduction of a new vehicle model or superficial "facelift" cannot be used as a reason to reset a manufacturer's local content obligations back to zero.

🏭 Address the OEM-Vendor Structural Imbalance​

  • Equalize Incentives: Grant local parts manufacturers the same duty exemptions and tax holidays on their imports that are currently provided to OEMs bringing in finished CKD kits.

🛠️ Strengthen Institutional Oversight & Enforcement​

  • Create a Specialized Regulatory Body: Form an Automotive Development Authority (ADA) with cross-ministerial authority to oversee, measure, and enforce the auto policy's localisation clauses without political interference.
  • Publish Annual Transparency Reports: Mandate the public release of annual progress reports detailing each OEM’s achieved local content percentage, investment in tooling, and technology transfer commitments.
 
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Staying ahead of Sazgar

Rickshaw maker turned SUV powerhouse Sazgar Engineering (PSX: SAZEW) has no plans of stopping. The company’s third...
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Sazgar on fire 🔥
 
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