Pakistan's car sales surged by 39% to 155,631 units in fiscal year 2025-26 as stronger purchasing power among car buyers, improved bank financing and a wider choice of vehicles lifted demand, even as tractor sales declined amid poor returns in agriculture. Data released by the Pakistan Automotive Manufacturers Association on Monday showed that the improvement extended across several categories of the automobile market.

Sales of jeeps and pickups climbed by 41% to 50,814 units, while trucks and buses recorded an even sharper increase of 67% to 7,439 units. Rickshaw sales were reported to have risen by 25% to 985 units. Motorbikes and rickshaws, meanwhile, increased by 30% to 1,972,077 units, according to the figures provided. Farm machinery was an exception to the broader improvement. Tractor sales slipped by 1% to 28,791 units. The decline was attributed to growers' reluctance to invest in agriculture following poor returns over the past couple of years. Muhammad Sabir Shaikh, an automobile and motorcycle analyst, attributed the rise in car purchases to several factors, including greater purchasing power among vehicle buyers and bank-financing schemes suited to customers.

Greater choice has also helped. Assemblers have introduced a wider variety of models and vehicle types, including conventional fuel-powered cars as well as electric and hybrid alternatives. The strong performance of cars contrasts with what Shaikh described as an incomplete recovery in the motorcycle market. He said annual motorcycle sales, including official and unofficial transactions, had reached around 3 million units in 2016, before the Covid-19 pandemic. Despite the 30% increase reported for motorbikes and rickshaws in FY26, Shaikh said motorcycle sales had yet to regain their earlier strength. He attributed the weakness to diminished purchasing power among middle-class consumers, who constitute the bulk of motorcycle buyers.

The difference between the car and motorcycle segments is particularly conspicuous. According to Shaikh, many middle-income consumers cannot afford an electric motorcycle costing around Rs300,000, while buyers at the upper end of the car market continue purchasing vehicles worth more than Rs10 million.

He said this reflected a sharp increase in purchasing power among buyers in the car segment, even as affordability remained difficult for many motorcycle customers. Transport costs have added to the pressure on households. Shaikh said high fuel prices had pushed up fares for auto-rickshaws and ride-hailing services, making motorcycle ownership increasingly necessary for many families. Yet he argued that even buying a motorcycle had become extremely difficult for a middle-class household. The analyst also pointed to deficiencies in Pakistan's public transport and road infrastructure, particularly in Sindh. He said Karachi continued to suffer from deteriorating roads despite its size and importance.

Shaikh called on federal and provincial governments to invest immediately in better road infrastructure and expand public transport networks. The FY26 automobile figures therefore reveal markedly different conditions within Pakistan's vehicle market. Car buyers returned in considerable numbers, pushing sales up by nearly two-fifths, while jeeps and pickups expanded by 41% and trucks and buses by 67%. Greater financing options and a broader selection of conventional, electric and hybrid vehicles accompanied that recovery. Motorcycles and rickshaws also recorded strong growth in the reported figures, but their volumes remain below the level Shaikh cited for the motorcycle market before the pandemic. Affordability continues to constrain the middle-income consumers who dominate that segment.

Agriculture presents another contrast. While demand for passenger and commercial vehicles strengthened, tractor purchases fell to 28,791 units as poor returns discouraged growers from making new investments. Pakistan's FY26 vehicle market thus offers an uneven picture of purchasing power: car sales have accelerated sharply and expensive vehicles continue to find customers, while many middle-class consumers still struggle with the cost of basic personal transport and farmers remain reluctant to spend on tractors.