Pakistan: Automobile Market Projection for 2026

Pakistan’s automobile market—specifically sales of locally assembled vehicles by PAMA member manufacturers—is projected to recover to approximately 180,000 units in 2025, a 40.0% increase year-on-year. This rebound is largely attributed to the conclusion of a series of policy rate cuts that began in mid-2024 (dropping from a peak of 22%). As the government shifted its stance to hold rates steady at 11–12%—levels seen prior to the pandemic—the resulting surge in auto loan utilization has significantly bolstered the market recovery.