KARACHI: Vehicle sales in Pakistan surged 45% during the first 11 months of the fiscal year, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).
Total car sales reached 183,704 units during the period, the association said.
In May 2026 alone, vehicle sales rose 19% year-on-year to 17,660 units. However, sales declined 20% month-on-month, which analysts attributed to Eid-related holidays.
Motorcycle and three-wheeler sales reached 172,433 units in May, reflecting a 13% year-on-year decline and a 10% monthly drop. Despite this, total sales for the 11-month period stood at 1.8 million units, marking a 30% annual increase.
Among major manufacturers, Suzuki reported a 75% rise in monthly sales to 8,856 units. Honda Atlas posted an 11% increase with 2,230 units sold, while Hyundai Nishat saw a 31% decline, with sales dropping to 902 units.
Industry officials said the overall growth reflects gradual economic recovery and improved consumer demand in the auto sector.
More read, IMF demands 25% sales tax on imported electric vehicles
Earlier, The International Monetary Fund (IMF) has pushed back against a proposed reduction in sales tax on imported electric vehicles, demanding the rate be set at 25 percent rather than the 1 percent floated by Pakistani authorities, sources said Wednesday.
The fund classified imported EVs as luxury goods despite their environmental credentials, opposing any tax concession on the vehicles, sources said.
The development comes as Prime Minister Shehbaz Sharif has directed officials to protect jobs in domestic industries ahead of the upcoming federal budget.
The government is considering a package of relief measures for the local auto manufacturing sector in the next fiscal year. Raw material imports for the domestic auto industry could be taxed at just 1 percent, while import duties on parts used to manufacture locally assembled vehicles may be halved from 10 percent to 5 percent.
