Pakistan’s auto industry is expected to continue its recovery trend in FY2025-26, with total vehicle sales (including local manufacturers, non-PAMA assemblers, and used imports) projected to reach around 297,000 units.
But Japanese automakers, including Indus Motor Company, Honda Atlas Cars, and Pak Suzuki Motor Company, are expected to collectively account for about 56 percent of total market share in FY26.
This marks a sharp decline from nearly 80 percent dominance recorded in FY18, when industry volumes peaked at around 329,000 units.
Topline Securities said that market dynamics are changing significantly as competition increases and consumer demand patterns evolve.
The shrinking share of traditional players reflects the growing presence of new entrants in Pakistan’s automotive market. These companies are gradually reshaping competition by offering alternative and cheaper models and responding to shifting consumer preferences.
Despite lower dominance from legacy brands, overall industry volumes are still expected to remain near previous peak levels.
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