Pakistan’s automobile sector is projected to continue its recovery in FY26, with total industry sales — including locally assembled vehicles, non-PAMA units, and used imports — expected to reach around 297,000 units.

Despite this growth, the competitive structure of the market is undergoing a clear shift. The share of traditional Japanese manufacturers is expected to decline further as new entrants expand their presence.

Leading Japanese automakers, including Indus Motor Company, Honda Atlas Cars, and Pak Suzuki Motor Company, are projected to collectively hold about 56% of the market in FY26. This is a significant drop compared to nearly 80% dominance recorded in FY18, when total industry volumes peaked at roughly 329,000 units.

The reduced market share highlights increasing competition from new automotive players, which are gradually capturing demand through expanded model offerings and changing consumer preferences. As a result, Pakistan’s auto industry is becoming more diversified, with no single group maintaining the level of dominance seen in previous years.