ISLAMABAD, July 14 (Xinhua) -- Pakistan's passenger car sales rose 39 percent year on year to 155,631 units in the fiscal 2026 ending June 30, driven by lower interest rates, easing inflation and the introduction of new vehicle models, according to data released by the Pakistan Automotive Manufacturers Association.

Vehicles are displayed at the Vintage and Classic car show in northwest Pakistan's Peshawar on Dec. 4, 2022. (Photo by Saeed Ahmad/Xinhua)

Sales of jeeps, sport utility vehicles (SUVs), pickups and vans increased 41 percent to 50,814 units during the same period, reflecting improving consumer demand and higher auto financing.

In June alone, car sales climbed to 15,378 units from 13,211 units in May, while sales of jeeps, SUVs, pickups and vans rose to 7,363 units from 4,449 units a month earlier.

The growth extended across most segments of the auto industry. Motorcycle and three-wheeler sales reached a record 1.97 million units in the fiscal year, up 30 percent from a year earlier, while truck and bus sales surged 61 percent to 8,424 units.

The tractor segment remained the only major category to post an annual decline, with sales edging down 1 percent to 28,791 units despite higher sales in June.

Market analysts attributed the June sales increase partly to pre-budget buying as consumers accelerated purchases amid expectations of higher taxes and duties.

They also expect the positive momentum to continue in fiscal 2027, supported by new model launches, the entry of new automotive brands and improving financing conditions.