As far as recoveries go, in the first-half of the fiscal year, volumes in Pakistan’s automobile industry are looking stronger than they have in years. Sales of passenger cars, SUVs and light commercial vehicles rose 46 percent year on year in 1HFY26 to just over 88,000 units, driven by reduced borrowing costs, improved access and a steady stream of new model launch that has injected some excitement back into showrooms. The rebound is unmistakable. What is equally clear is that the market that is being rebuilt no longer looks the same as the one before the downturn. Volumes according to official numbers reported by Pakistan Automotive Manufacturers Association seem to be below the peaks of FY22 when half-year sales regularly exceeded 135,000 units. However, since a number of new brands are not reporting their statistics for production and sales, it is likely the case that today’s volumes are closer to the peak than imagined. The difference also lies in what is being sold rather than just how much. Passenger car volumes increased 42 percent. But demand has become more polarised. Toyota’s Corolla and Yaris range and Honda’s City and Civic posted robust year-on-year gains, but their absolute sales are still far from historical norms—roughly 43 percent lower than the peaks. Sedans are no longer the automatic centre of gravity for the market. At the lower end, affordability continues to dictate outcomes. Suzuki’s Alto sold more than 24,000 units in the first half solidifying its position as industry’s single most important model. It has absorbed demand once spread across several models while cars positioned in the squeezed middle have struggled. Wagon R sales havedwindled, as Alto reigns supreme atcompactness, entry-level pricing and fuel efficiency. Two- and three-wheelers tell a similar story with sales climbing 33 percent year on year to more than 920,000 unitssuggesting an easing of financial conditions and emphasizing on thecontinued importance of low-cost mobility on Pakistani roads. On the opposite end of the spectrum, SUVs are emerging as the clearest winners of the recovery. SUV volumes jumped 66 percent year on year, lifting their share to 25 percent from an average 15-17 percent. From Toyota’s Fortuner to Hyundai’s Tucson, Changan Oshan and Kia Sportage and Sorento to Haval’s expanding line-up. BYD is assembling its New Energy Vehicles (NEVs) locally with hefty investments by HUBCO in assembly and infrastructure and the launch of locally assembled Jaecoo J5 is being touted as the most “affordable” SUV of its calibre in the market. These vehicles are not only commanding the roads; they are also commanding the bottom lines. For manufacturers, the segment’s significant appeal lies in higher margins, stronger pricing power and buyers who are less constrained by financing costs. This shift is reshaping industry strategies. New launches are increasingly clustered around crossovers, SUVs and NEVs reflecting where demand is both growing and most profitable. The traditional sedan which was once the default aspirational purchase in Pakistan is gradually losing relevance as buyers either trade down to basic mobility or step up to larger, more versatile, and feature-forwardoptions. The recovery in the industry is therefore both genuine and selective. Lower interest rates and new offerings have brought buyers back, but they are reorganising around extremes. Entry-level hatchbacks and high-margin SUVs are carrying the rebound, while the middle thins out. In another year or two, what will be playing out is perhaps a different balance of power altogether and certainly a different kind of car buyer leading the industry.