Pakistan’s vehicle market showed contrasting trends in August 2025, with car sales recording significant gains while tractor sales fell sharply.
According to the Pakistan Automotive Manufacturers Association (PAMA), car sales, including light commercial vehicles, vans, and jeeps, rose 62% year-on-year to 14,050 units compared to 8,699 in August 2024.
On a month-on-month basis, sales climbed 27%. Analysts attribute the growth to rising consumer confidence and increased bank financing options.
Read More: 40% Duty on Used Cars Aims to Protect Local Automakers
Truck sales also surged, growing by 140% to 596 units, while motorbike and rickshaw sales increased 42% to 148,063 units. But tractor sales painted a grim picture, plunging 63% to 996 units from 2,670 a year earlier.
Auto analyst Muhammad Sabir Shaikh said car demand was being supported by leasing schemes from both commercial and Islamic banks. However, he pointed out that farmers were “distraught” by years of poor crop yields, high input costs, and low returns, leaving them unable to invest in tractors.
Industry expert Mashood Khan said the momentum in car sales during the first two months of FY26 — 25,093 units, a 45% YoY rise — reflects resilience in the urban consumer market. He stressed, however, that the government must safeguard local manufacturers to prevent the market from being overwhelmed by used imports.