By Abdul Ghani

Pakistan’s automobile sector recorded strong growth during FY2026, with production of trucks and buses increasing by 78.4 percent, cars by 52.3 percent and two- and three-wheelers by 31.2 percent, according to the Monthly Economic Update & Outlook released by the Finance Division.

The data shows that the automobile segment emerged as a major contributor to industrial activity during the fiscal year, reflecting increased production across multiple vehicle categories.

Production of jeeps and pick-ups also increased by 24.0 percent during Jul-Feb FY2026, indicating broad-based growth within the sector.

The rise in automobile output contributed significantly to overall manufacturing performance, with the sector accounting for a 1.6 percent contribution to large-scale manufacturing growth during Jul-Jan FY2026.

The report highlights that vehicle production increased across both passenger and commercial segments, indicating expanded consumer and transport-related demand.

The growth in trucks and buses, which recorded the highest increase among all categories, reflects a notable rise in production of commercial vehicles during the period.

Similarly, the increase in car production points to higher output in the passenger vehicle segment, while the growth in two- and three-wheelers indicates expansion in lower-cost mobility options.

The performance of the automobile sector also aligns with growth observed in other industrial segments, including wearing apparel, food and petroleum products, which collectively contributed to overall manufacturing activity.

In addition to automobiles, the cement sector also recorded growth during the period. Cement dispatches increased by 10.9 percent during Jul-Feb FY2026, reaching 34.8 million tonnes.

Domestic cement dispatches rose by 11.9 percent to 28.5 million tonnes, while exports increased by 6.3 percent, with total export volume reaching 6.3 million tonnes.

The report indicates that the increase in production across key industrial sectors reflects improved activity levels and higher output during the fiscal year.

Overall, the automobile sector’s strong performance, particularly in trucks, cars and two-wheelers, highlights its role as a key driver of industrial activity during FY2026.

Credit: INP-WealthPk