Pakistan Car Ownership Plunges to a New Low Amid Policy Uncertainty
Pakistan’s long-struggling automobile ownership rate has taken another hit, dropping to just 11 car owners per 1,000 people. This is a stark fall from 18 per 1,000 of the last statistics, underscoring deep structural issues in the auto sector, industry leaders say.
According to the Tribune, Indus Motor Company (IMC) CEO Ali Asghar Jamali revealed this latest decline while speaking about the state of the country’s car market and economic landscape.
Ownership Decline Signals Affordability Crisis
Jamali attributed the slide not to lack of interest but to affordability challenges, stagnant income growth, and volatile government policies that have stymied demand and discouraged long-term investment planning.
The rate of 11 owners per 1,000 remains among the lowest in the region, reflecting how far Pakistan trails its neighbors in motorisation.
“Businesses need consistent policy decisions to commit to the long-term investments required in this capital-intensive industry,” Jamali told, stressing that frequent regulatory shifts undermine investor confidence.
Production Outlook Mixed
Despite the ownership slump, Pakistan’s vehicle production is forecast to exceed 275,000 units this year, with potential to approach the 2021 record of 350,000 units, Jamali said.
This is fuelled by rising remittances and some macroeconomic improvements. He also hinted at new model launches and localisation investments, though details remain limited.
Structural Challenges Remain
Analysts say this situation highlights broader economic constraints that pinch consumer purchasing power and investment inflows.
With per-capita income still too low to support widespread car ownership, the market’s rebound will depend on durable policy frameworks and meaningful income growth to make cars affordable for a broader swath of the public.
The decline in car ownership isn’t just a statistic; it’s a mirror held up to the economy’s deeper weaknesses.
