PAKISTAN – Pakistan’s auto industry recorded a robust surge in overall vehicle sales during the last month, despite a significant decline in tractor purchases, according to local industry data.
Passenger vehicle, motorcycle, and light commercial vehicle sales rose steadily, supported by improved consumer financing and promotional schemes. Demand growth in the urban and semi-urban regions helped offset the sharp dip in tractor sales, which plummeted due to weak agricultural investment and challenging farming conditions.
Manufacturers suggested that rising interest in affordable family vehicles and delivery transports amid expanding e-commerce activity supported the positive trend. Meanwhile, delays in government procurement and low crop output have been cited as key factors for the decline in tractor demand.
Industry analysts warned that sustained growth in auto sales depends on resolving macroeconomic pressures, including exchange rate volatility and tightening lending policies. They also stressed the need for targeted incentives, such as tax relief on support equipment, to boost tractor purchases and reinforce rural economic links.
Auto industry representatives urged policymakers to adopt a balanced strategy that supports both urban mobility and agricultural mechanisation, ensuring long-term growth across all segments of the sector.
This story has been reported by PakTribune. All rights reserved.