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Automotive Report Pakistan

  • ID: 2123763
  • Report
  • March 2021
  • Region: Pakistan
  • 13 Pages
  • The Economist Intelligence Unit
Pakistan is the world's fifth most populous country, with more than 220m people, but its market for motor vehicles is small, with only about 128,000 new units registered in 2020. It is a poor country with extremely wide income inequality. Demand for cars is confined to the upper-middle class and elite; it dropped to unprecedented lows last year owing to the coronavirus (Covid-19) pandemic. As at late March 2021 Pakistan had reported more than 583,000 cases and 13,000 deaths from the virus, but low testing rates mean that the numbers may be under-reported.

According to the Pakistan Automotive Manufacturers' Association (PAMA), the market shrank by nearly 30% in 2019, and by a further 34% year on year in 2020. The country was put into lockdown to stem the spread of the coronavirus, but the government also announced a stimulus plan of US$7bn to support low-income workers. Interest rates were cut by 625 basis points to 7% in March-July 2020 and were maintained at the most recent monetary policy review meeting, in January 2021. This has helped to fuel a strong recovery in vehicle sales since August 2020, amid pent-up demand.

Nevertheless, The Economist Intelligence Unit does not expect the new-vehicle market to regain its pre-pandemic levels before 2024-25. This is in line with our forecast for a slow vaccination rollout. From its low base in 2020, we expect the new-car market to expand at a compound annual growth rate (CAGR) of 9.6% in our five-year forecast period (2021-25). Sales of new commercial vehicles (CVs) and buses will grow at a slower CAGR of 7.4%. However, total annual sales in 2025 will remain far below their 2018 peak.

Industry List: Automotive, Automotive, Commercial and other vehicles, Automotive, Fuel sources, Automotive, Passenger vehicles, Automotive, Production
Industry Codes (NAIC): 336
Industry Codes (SIC): 37
Note: Product cover images may vary from those shown
Automotive Report Pakistan

Automotive report: Overview

Automotive report: Passenger cars

Automotive report: Commercial and other vehicles

Automotive report: Production

Automotive report: Fuel sources
Note: Product cover images may vary from those shown