Sales of automobiles in Pakistan surged by an astounding 73% in January, reaching 17,010 units, as compared to the previous month. This expansion was also 61% higher than the corresponding period the previous year. A total of 77,686 units were sold in the first seven months of FY25, a 55% increase over the same period last year. This increase was driven by vehicles such as cars, pickup trucks, vans, and light commercial vehicles.
The “low base effect,” in which sales are normally lower in December because customers wait for new-year registrations, was partially responsible for the higher statistics. Sales were boosted in large part by falling borrowing rates, a resurgence in consumer confidence, and the release of new and improved car models, according to analysts.
The commercial category also demonstrated encouraging expansion. Sales of trucks and buses increased by around 100%, while sales of two- and three-wheelers increased by 835,616 units, a considerable increase over the previous year’s 646,440 units. Tractor sales dropped to 20,158 units during the same time period, so it wasn’t all good news.
Meanwhile, the first cargo of BYD electric vehicles to Pakistan was delivered through the Karachi Port, marking a significant milestone for the South Korean company. This news follows the Dewan Group’s plan to invest Rs2.5 billion to install 500 electric taxis in Sindh, indicating a rising interest in electric transportation in Pakistan.
With new vehicle models hitting the market and interest rates on auto loans continuing to fall, the industry should keep up its impressive performance. Optimism regarding the future of Pakistan’s automobile business persists among industry executives and observers, who see it as a beneficial stimulus for economic growth.
