Pakistan’s Automotive Manufacturers Association (PAMA) recently announced a remarkable surge in car sales across the country, reporting a 118% year-on-year increase in October 2024. During the month, 10,557 vehicles were sold, a significant rise from 4,850 units in October 2023. This growth is attributed to a rise in purchasing power, coupled with more favorable auto financing options that have made cars more accessible to consumers.
October’s sales figures also represented a 35% increase from the previous month, highlighting a continued positive trend. For the first four months of the fiscal year 2025, car sales increased by 47%, indicating solid growth in Pakistan’s auto market.
Industry analysts credit several factors for this upswing, including lower interest rates, the availability of interest-free financing options, and the launch of new vehicle models that have generated interest, particularly in hybrid and electric cars. These eco-friendly options are attracting a growing number of environmentally conscious consumers, as well as those interested in the latest automotive technologies.
However, experts caution that challenges remain, especially in making cars affordable for the lower middle class. While the industry has made strides in offering financing options, there is still a lack of truly affordable car models for many consumers. Despite the growth, affordability remains a key issue, and experts suggest that broader market accessibility will be crucial for sustaining this momentum.
