Pakistan Automobile Industries

Govt approves UAE-style vehicle refurbishment, re-export framework​

  • Framework based on international best practices
Published May 8, 2026

1778245722853.jpeg

By BR Web Desk

The Economic Coordination Committee (ECC) has approved a framework for the import, refurbishment, and re-export of used vehicles and auto parts, a move that could unlock investment of up to $300 million.

According to officials privy to the matter, the initiative, which had remained stalled since October 2023 due to regulatory misalignment among multiple government bodies, including the Ministry of Commerce, Ministry of Industries and Production, Federal Board of Revenue and Engineering Development Board (EDB), received approval from the ECC on April 27, 2026, after facilitation by the Special Investment Facilitation Council (SIFC).

“SIFC undertook intensive facilitation during Q1 2026, aligning IPO 2022 and EFS 2021 frameworks to structure Pakistan’s first Import–Refurbishment–Export (IRE) model for used vehicles and auto parts,” the official told Business Recorder.

The SIFC is a high-level body established by the government to act as a single window interface to attract foreign direct investment (FDI).

Under the approved mechanism, used vehicles and components will be imported by EDB-certified operators under a regulated export-oriented framework.

The official shared that the framework draws upon international best practices, including Dubai’s Jebel Ali refurbishment-export model, with vehicles mandated for re-export within prescribed timelines and prohibited from domestic sale.

The official said the initiative has also been incorporated into the draft Auto Policy 2026–31, “positioning Pakistan for integration into the global automotive refurbishment and re-export value chain.”

The project is expected to attract an initial investment of $20–30 million, with potential to scale up to nearly $300 million over time, while generating export earnings and employment opportunities, added the official.
 
1961 Karachi.

Auto Rickshaw

1778353885700.png
 
The real test of all these chinese vehicles will start by mid to end year. The bikes and rickshaw damaged lights, bumpers and front fascia will cost a fortune to replace. Even the GCC countries where Jetour, Tank, BYD and Chery Tigo is gradually making inroads, are facing problems with repairs and maintenance services.
 
Pakistan Space Agency said:

Govt approves UAE-style vehicle refurbishment, re-export framework​

  • Framework based on international best practices
Published May 8, 2026

View attachment 196410

By BR Web Desk

The Economic Coordination Committee (ECC) has approved a framework for the import, refurbishment, and re-export of used vehicles and auto parts, a move that could unlock investment of up to $300 million.

According to officials privy to the matter, the initiative, which had remained stalled since October 2023 due to regulatory misalignment among multiple government bodies, including the Ministry of Commerce, Ministry of Industries and Production, Federal Board of Revenue and Engineering Development Board (EDB), received approval from the ECC on April 27, 2026, after facilitation by the Special Investment Facilitation Council (SIFC).

“SIFC undertook intensive facilitation during Q1 2026, aligning IPO 2022 and EFS 2021 frameworks to structure Pakistan’s first Import–Refurbishment–Export (IRE) model for used vehicles and auto parts,” the official told Business Recorder.

The SIFC is a high-level body established by the government to act as a single window interface to attract foreign direct investment (FDI).

Under the approved mechanism, used vehicles and components will be imported by EDB-certified operators under a regulated export-oriented framework.

The official shared that the framework draws upon international best practices, including Dubai’s Jebel Ali refurbishment-export model, with vehicles mandated for re-export within prescribed timelines and prohibited from domestic sale.

The official said the initiative has also been incorporated into the draft Auto Policy 2026–31, “positioning Pakistan for integration into the global automotive refurbishment and re-export value chain.”

The project is expected to attract an initial investment of $20–30 million, with potential to scale up to nearly $300 million over time, while generating export earnings and employment opportunities, added the official.
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Posted already
 

Auto sales double on cheap financing​

Aamir Shafaat Khan
May 13, 2026

KARACHI: Barring the tractor segment, sales of cars, vans, pickups and sport utility vehicles recorded robust year-on-year growth of 107 per cent and a month-on-month rise of 42pc to 22,015 units in April, taking the 10MFY26 cumulative sales to 166,044 units, up by 49 per cent YoY.

Myesha Sohail of Topline Securities said the impressive year-on-year growth was driven by new market entrants, new product launches, relatively lower inflation in previous months, and a surge in auto financing. Auto financing reached a 42-month high in March, up 34pc YoY and 3pc MoM.

She expects positive momentum in auto sales to continue, supported by lower interest rates and new hybrid and plug-in hybrid models.

Sazgar Engineering reported sales of 2,225 units in April, up 305pc YoY and 28pc MoM. This includes 16 units of the new TANK variant, which started deliveries in April. The company sold 14,855 units in 10MFY26, up 73pc YoY.

Pak Suzuki posted a 175pc YoY and 76pc MoM surge to 11,012 units in April, driven mainly by sales of the Suzuki Alto and Swift. The company sold 76,718 units in 10MFY26, a 42pc YoY rise.
 
Honda Atlas Cars Ltd recorded a rise of 59pc YoY and 17pc MoM to 2,716 units in April, while cumulative 10MFY26 sales surged 58pc to 22,813 units.

Indus Motor Company (IMC) recorded 33pc YoY and 12pc MoM growth to 4,330 units in April, while July-April FY26 sales rose 51pc YoY to 37,643 units.

Hyundai Nishat Motors recorded an 11pc YoY and 8pc MoM increase to 1,002 units in April, largely driven by the Tucson model, while 10MFY26 sales rose to 10,684 units, up 30pc YoY.

Bike/rickshaws

Myesha said two- and three-wheeler sales increased by 40pc YoY and 14pc MoM to 190,340 units in April, marking an all-time-high value. This took cumulative 10MFY26 sales to 1.6m units, up 32pc YoY.

She said Atlas Honda recorded an increase of 41pc YoY and 14pc MoM, with sales reaching 163,000 units, marking yet another all-time-high for the company.

Truck and bus sales surged 58pc YoY and 46pc MoM to 824 units in April, while 10MFY26 sales rose by 72pc to 6,686 units YoY.
 
Used car imports

Minhal Ali of Insight Research said that Indus Motor Company (IMC), in its corporate briefing on Tuesday, informed analysts that used-car imports surged by 22pc YoY to 36,000 units in 9MFY26.

Used car imports recorded a significant decline in March 2026 to 793 units versus 3,785 units in February 2026, amid a strict import policy, she said.

However, Myesha Sohail said that US-Iran war had also impacted imports of used cars in March. In FY25, used-car imports totalled 42,122 units.

Tractor

Tractor sales grew by 76pc YoY, but plunged 6pc MoM to 2,824 units in April 2026. Total tractor sales in 10MFY26 fell 7pc YoY to 23,116 units.

Millat Tractors Ltd (MTL) on Tuesday informed the Pakistan Stock Exchange (PSX) that its subsidiary company has signed a memorandum of understanding (MoU) with a leading electric bike manufacturer of China for the assembly, manufacturing and marketing of e-bikes in Pakistan.
 

Auto sales double on cheap financing​

Aamir Shafaat Khan
Published May 13, 2026

1778684041247.jpeg
A file photo of a row of cars. —Reuters/File

KARACHI: Barring the tractor segment, sales of cars, vans, pickups and sport utility vehicles recorded robust year-on-year growth of 107 per cent and a month-on-month rise of 42pc to 22,015 units in April, taking the 10MFY26 cumulative sales to 166,044 units, up by 49 per cent YoY.

Myesha Sohail of Topline Securities said the impressive year-on-year growth was driven by new market entrants, new product launches, relatively lower inflation in previous months, and a surge in auto financing. Auto financing reached a 42-month high in March, up 34pc YoY and 3pc MoM.

She expects positive momentum in auto sales to continue, supported by lower interest rates and new hybrid and plug-in hybrid models.

Sazgar Engineering reported sales of 2,225 units in April, up 305pc YoY and 28pc MoM. This includes 16 units of the new TANK variant, which started deliveries in April. The company sold 14,855 units in 10MFY26, up 73pc YoY.

Pak Suzuki posted a 175pc YoY and 76pc MoM surge to 11,012 units in April, driven mainly by sales of the Suzuki Alto and Swift. The company sold 76,718 units in 10MFY26, a 42pc YoY rise.

Honda Atlas Cars Ltd recorded a rise of 59pc YoY and 17pc MoM to 2,716 units in April, while cumulative 10MFY26 sales surged 58pc to 22,813 units.

Indus Motor Company (IMC) recorded 33pc YoY and 12pc MoM growth to 4,330 units in April, while July-April FY26 sales rose 51pc YoY to 37,643 units.

Hyundai Nishat Motors recorded an 11pc YoY and 8pc MoM increase to 1,002 units in April, largely driven by the Tucson model, while 10MFY26 sales rose to 10,684 units, up 30pc YoY.

Bike/rickshaws

Myesha said two- and three-wheeler sales increased by 40pc YoY and 14pc MoM to 190,340 units in April, marking an all-time-high value. This took cumulative 10MFY26 sales to 1.6m units, up 32pc YoY.

She said Atlas Honda recorded an increase of 41pc YoY and 14pc MoM, with sales reaching 163,000 units, marking yet another all-time-high for the company.

Truck and bus sales surged 58pc YoY and 46pc MoM to 824 units in April, while 10MFY26 sales rose by 72pc to 6,686 units YoY.

Used car imports

Minhal Ali of Insight Research said that Indus Motor Company (IMC), in its corporate briefing on Tuesday, informed analysts that used-car imports surged by 22pc YoY to 36,000 units in 9MFY26.

Used car imports recorded a significant decline in March 2026 to 793 units versus 3,785 units in February 2026, amid a strict import policy, she said.

However, Myesha Sohail said that US-Iran war had also impacted imports of used cars in March. In FY25, used-car imports totalled 42,122 units.

Tractor

Tractor sales grew by 76pc YoY, but plunged 6pc MoM to 2,824 units in April 2026. Total tractor sales in 10MFY26 fell 7pc YoY to 23,116 units.

Millat Tractors Ltd (MTL) on Tuesday informed the Pakistan Stock Exchange (PSX) that its subsidiary company has signed a memorandum of understanding (MoU) with a leading electric bike manufacturer of China for the assembly, manufacturing and marketing of e-bikes in Pakistan.
 

Pakistan joins top tyre exporters​

The Newspaper's Staff Reporter
May 15, 2026

KARACHI: Pakistan has emerged among the top 10 exporters of truck and bus radial (TBR) tyres to key global markets including the United States and Brazil.

Service Long March Tyres Ltd (SLM) has rapidly expanded its international footprint since commencing operations in 2022, recording strong export growth across the US, Brazil and in emerging markets like South Africa and Egypt, says a press release.

SLM is leveraging state-of-the-art Chinese technology to maintain one of the lowest production cost structures among tyre manufacturers in Pakistan, providing the company a strong competitive advantage in international markets and enabling it to export nearly 40 per cent of its truck and bus radial tyre production.
 
Domestically, Pakistan’s tyre market continues to present significant scale. Annual demand is estimated at around 1.7 million units in the truck and bus segment, alongside approximately seven million units for passenger vehicles.

Historically, a large portion of this demand was met through imports, but local manufacturing is increasingly replacing imported volumes.

SLM currently produces approximately 1.6 million TBR tyres annually and plans to expand capacity to two million units by July 2026 and 2.2m units by June 2027. The company holds an estimated 58pc share in the domestic TBR segment.
 

Pakistan’s Auto Market Is Growing, But Japanese Brands Are Losing Share​

On May 17, 2026

Pakistan’s auto industry is expected to continue growing this year, with total sales projected to reach around 297,000 vehicles by June 30, 2026, according to Topline Securities.


Topline-295x300.jpeg


Japanese Brands Losing Their Grip​

Toyota, Honda and Suzuki are still major players in Pakistan, but their share is shrinking.

According to the report, these Japanese brands are expected to hold around 56% of the market this year.

In comparison, they held around 80% market share in 2018, when Pakistan’s auto sales were much higher.

New Brands Are Changing Buyer Choices​

The drop shows that new car brands are now taking a stronger position in Pakistan. Buyers have more options than before, especially in crossovers, SUVs, hybrids and electric cars.

This is also putting pressure on older brands. Brand trust and resale value still matter, but they are no longer the only reasons people buy a car.

Sales May Rise Further Next Year​

Topline Securities also expects total vehicle sales to reach around 326,000 units next year, close to the level seen in 2018.

The important point is that Pakistan’s car market is growing again, but it is no longer the same market. New brands are gaining ground, and buyer preferences are changing fast.

Buyer Choice Is Expanding​

For buyers, the growing number of brands means more options in crossovers, SUVs, hybrids, and EVs. New entrants are offering modern designs and better features, often at competitive prices.

However, resale value, parts availability, warranty support, and dealership network still matter. That is why Toyota, Honda, and Suzuki remain safer choices for many buyers, even as newer brands slowly gain trust.
 
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