SUV Market Share Hits 30%
The landscape of Pakistan’s automotive industry underwent a fundamental restructuring in 2025. Once dominated almost exclusively by compact sedans, the market has pivoted aggressively towards the SUV body segment.
According to the latest report by Arif Habib Limited (AHL), the SUV segment now commands an estimated 28-30% of the total market share in Pakistan, a massive leap from just 9% in 2021.
Breaking Down the Numbers: PAMA vs. Reality
While official data from the Pakistan Automotive Manufacturers Association (PAMA) shows SUVs accounted for an average of 18% in 2025, this figure only tells half the story.
The PAMA data excludes a significant volume of sales from non-member OEMs and recent entrants who have aggressively targeted this segment.
When these non-PAMA figures are integrated, accounting for players like Chery, JAECOO, and CBU imports from brands like BYD, the actual market penetration of SUVs rises to nearly one-third of all vehicle sales.
The Hybrid Catalyst
This growth is not merely about size preference but is being driven by a rapid shift toward hybrid powertrains.
2025 saw an acceleration in new vehicle launches, with a clear bias toward Hybrid Electric Vehicles (HEV) and Plug-in Hybrid Electric Vehicles (PHEVs).
The value proposition of a traditional combustion-engine SUV was often weakened by poor fuel economy (typically 8–10 km/L in non-hybrid mid-size or compact SUVs).
However, the influx of HEV and PHEV SUV options has neutralized this drawback. Many HEV SUVs can now achieve 13–15 kmpl; for example, the newly launched Jaecoo J5 HEV claims 18.8 kmpl, while the Tank 500 HEV claims 11.7 kmpl—a strong figure for a full-size luxury SUV. Meanwhile, PHEVs and REEVs such as the Jaecoo J7, Deepal S05, and Chery Tiggo 8 SHS offer WLTP ranges of 80–95+ km in pure EV mode.
All of these vehicles are Chinese entrants offered at competitive pricing.
New Contenders and Market Saturation
In recent times, the market has seen a flurry of activity as well. Established players have updated their lineups with HEV SUVs, including Honda HR-V e:HEV, Kia Sorento, Hyundai Tucson, and Kia Sportage L.
However, the most disruptive pressure is coming from new Chinese entrants. Models like the Jaecoo J7, Jaecoo J5, Deepal S05, Chery Tiggo 8, and the newly launched TANK 500 are challenging legacy pricing structures.
The AHL report states that this upward trajectory is expected to continue well into 2026, and our prediction indicates further expansion across both crossover SUV categories.
Outlook for 2026
As the gap between premium sedan prices and mid-size crossovers continues to shrink, the “sedan-killer” trend is likely to intensify. With SUVs offering better ground clearance for local road conditions and now matching sedans in fuel efficiency via hybrid technology, SUV market share is projected to grow further as new players fight for dominance in 2026.
