Pakistan Car Ownership Drops to 11 per 1,000 Residents
China’s electric vehicle and hybrid giant BYD reported a 30.1% drop in global vehicle sales for January 2026, marking the fifth consecutive month of declining deliveries. The automaker sold 210,051 vehicles worldwide, while production fell nearly 29.1% compared with the same period last year.
Hybrid models, which account for over half of BYD’s sales, also declined by 28.5%, indicating weakening consumer demand despite updates to long-range plug-in hybrid variants.
The company is now adjusting its global strategy, reducing its overseas shipment target for 2026 to 1.3 million units, down from 1.6 million previously. BYD plans to expand manufacturing with a new EV plant in Hungary, alongside existing and planned facilities in Brazil, Thailand, Indonesia, and Turkey.
Last year, BYD briefly overtook Tesla as the world’s top EV brand, boosted by exports, but its home market faces challenges from tapering subsidies and rising competition.
Meanwhile, car ownership in Pakistan has declined sharply, dropping from 18 to 11 vehicles per 1,000 residents, according to Ali Asghar Jamali, CEO of Indus Motor Company (IMC). Jamali cited structural challenges such as inconsistent policies, slow income growth, and affordability issues as the main barriers to market expansion.
Although IMC expects production to exceed 275,000 units this year, Jamali emphasized that Pakistan’s low per capita income, around $1,700, is a key obstacle, well below the $3,000 threshold needed for meaningful market growth. He compared Pakistan to India, where rising incomes drive annual car sales exceeding four million units.
Jamali also highlighted that price sensitivity varies across market segments. Buyers in lower-priced vehicles (under Rs5 million) are highly responsive to price changes, whereas high-end segments show less sensitivity, making them attractive for new entrants despite smaller volumes. He stressed that a market relying solely on premium segments cannot sustain long-term growth.
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Despite these challenges, Jamali defended the local auto sector for its role in industrial capacity building, vendor development, human capital growth, and job creation, particularly for Gulf exports. He noted that while local companies may lag in innovation, they play a critical role in localization and economic development.
