Wednesday, December 31 2025

End of comfort for auto giants
The year 2025 finally delivered a long-awaited wave of locally assembled vehicles in Pakistan, spanning hybrids, SUVs, pickups, and electric models, following a series of government policy interventions aimed at revitalising the auto sector. While the expanded lineup has brought greater choice, improved technology, and renewed competition, the benefits have so far remained concentrated in the higher-income segment. Affordable options for middle- and lower-income buyers remain largely absent, raising concerns that the current progress has yet to meaningfully trickle down to the broader segments of society, limiting the inclusive impact of the industry's recovery. According to Mashood Ali Khan, an auto industry expert, the sector operated in a paradoxical environment throughout the year. "While sales recovered and consumer interest returned, deep structural weaknesses persisted," he said, citing policy uncertainty, high taxation, rising used car imports, and weak localisation as major constraints.
Related news categories: auto-assembler business economic-indicators misc

Friday, December 12 2025

Auto sales fall 11% in November
Pakistan's automotive market experienced a sharp monthly slowdown in November, with total car sales plummeting 11% to 15,442 units from October's 17,333, according to the Pakistan Automotive Manufacturers Association (PAMA). Despite the monthly dip, year-on-year figures paint a brighter picture, up 592% from November 2024's 10,163 units, buoyed by lower interest rates and moderating inflation that are gradually thawing consumer demand. According to data compiled by Topline Securities, the strong annual growth was supported by easing inflation, lower interest rates, and the arrival of new entrants that strengthened overall market competitiveness. While the MoM decline in auto volumes was primarily driven by customers delaying vehicle deliveries to next year to benefit from new-year registration, AHL viewed. Moreover, an 11% contraction in PSMC's sales also added to the overall decline, driven by lower volumes in models that have been phased out, including Ravi, Bolan, Every, and Wagon R.
Related news categories: auto-assembler business economic-indicators misc

Wednesday, December 10 2025

ECC bans baggage car imports, approves circular debt management plan
The government on Tuesday banned the import of used cars under the baggage scheme and tightened restrictions for the other two schemes, including a minimum three-year stay abroad, restricting competition for foreign firms in breach of commitments made to the International Monetary Fund (IMF). The Economic Coordination Committee (ECC) of the Cabinet, which tightened the conditions for car imports, also allowed the Power Division to add Rs522 billion to the flow of circular debt under the newly approved Circular Debt Management Plan 2025-26. The Rs522 billion addition in the flow will be offset using taxpayers' money to keep the overall circular debt at last year's level. Finance Minister Muhammad Aurangzeb chaired the ECC meeting. According to another approval by the ECC, Rs2.5 billion of taxpayers' money will be used to pay pensions and medical bills of Pakistan International Airlines (PIA) employees. The Rs2.5 billion is over and above the Rs31.7 billion that the government has already budgeted to pay interest on PIA's legacy loans.
Related news categories: auto-assembler business economic-indicators misc