Pakistan auto sales surge 39% in FY26 as lower rates, new models drive demand

LAHORE: Pakistan's auto industry ended FY26 on a strong note, with car sales surging 39% and broad-based growth across nearly every segment, underscoring a sustained recovery fueled by lower interest rates, easing inflation, and the launch of new vehicle models.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA) on Monday, cumulative sales of cars, light commercial vehicles (LCVs), vans and jeeps reached 206,436 units in FY26, compared with 148,042 units in FY25. Excluding tractors, the broader auto sector recorded year-on-year growth ranging from 25% to 67%, reflecting robust consumer demand and improving market conditions.

The recovery was primarily driven by lower borrowing costs, which boosted auto financing, relatively subdued inflation, and a wider range of offerings introduced by both established automakers and new entrants.

The positive momentum continued into the final month of the fiscal year. Total sales of cars, LCVs, vans and jeeps rose to 22,741 units in June 2026, up 4.4% from 21,773 units in the corresponding month last year. On a month-on-month basis, sales jumped 28.8% from 17,660 units recorded in May.

The below-1000cc category remained the largest contributor to passenger car sales, accounting for 7,719 units in June. The Suzuki Alto continued to dominate the segment with 7,239 units, while the newly launched Suzuki Every contributed 480 units. 

The 1300cc and above category followed closely with 7,200 units sold during the month. Toyota's Corolla, Yaris and Corolla Cross led the segment with combined sales of 2,650 units, narrowly ahead of Honda's Civic and City, which posted 2,594 units. Suzuki Swift recorded sales of 1,668 units, while Hyundai Elantra and Hyundai Sonata sold 237and 51 units, respectively.

Meanwhile, the 1000cc segment recorded 439 units, all of which were Suzuki Cultus sales. 

Among individual automakers, Sazgar Engineering Ltd emerged as one of the strongest performers. The company posted an all-time high monthly sales figure of 2,720 units in June, representing a 102% year-on-year and 70% month-on-month increase. The surge was largely attributed to pre-budget buying and strong deliveries of its Tank SUV. For the full fiscal year, Sazgar sold 19,179 units, up 77% from FY25.

Pakistan Suzuki Motor Company Ltd (PSMCL) reported June sales of 11,543 units, down 13% year-on-year but 30% higher than May. Following the launch of the Suzuki Fronx in May, the company sold 1,717 units of the crossover in June alone. PSMCL's cumulative FY26 sales reached 97,117 units, marking a 34% increase over the previous year.

Honda Atlas Cars Ltd (HACL) continued its upward trajectory, with June sales rising 64% year-on-year and 33% month-on-month to 2,972 units. The company closed FY26 with 28,015 units sold, a 53% increase from FY25 and its highest annual sales in four years.

According to Topline Securities, Indus Motor Company (IMC) sold 3,507 units in June, down 5% year-on-year while remaining broadly unchanged from the previous month. Sales of the Corolla, Yaris and Corolla Cross declined 9% year-on-year and 1% month-on-month to 2,650 units, whereas Fortuner and IMV sales increased 9% year-on-year and 6% month-on-month to 857 units. For the full fiscal year, IMC sold 44,646 units, up 34%

Hyundai Nishat Motors recorded June sales of 1,351 units, reflecting a 7% year-on-year decline but a 50% month-on-month increase. The company's Tucson and Porter models posted month-on-month growth of 91% and 13%, respectively. Hyundai ended FY26 with 12,937 units sold, representing an 18% increase over the previous fiscal year.

The recovery extended beyond passenger vehicles. Sales of motorcycles and three-wheelers rose 29% year-on-year and 4% month-on-month to 178,508 units in June, lifting cumulative FY26 sales to a record 1.97 million units, up 30% from the previous year. Atlas Honda Ltd alone accounted for 1.69 million units, recording 32% annual growth.

The tractor segment posted mixed results. June sales increased 10% year-on-year and 17% month-on-month to 3,059 units, but cumulative FY26 sales edged down 1% to 28,791 units

Meanwhile, truck and bus sales maintained their strong momentum, rising 39% year-on-year and 43% month-on-month to 1,023 units in June. For FY26, cumulative sales reached 8,424 units, representing a 61% increase over the previous year.

Looking ahead, Topline Securities expects the positive momentum to continue into FY27, supported by the launch of new variants, continued expansion of product portfolios, and the entry of additional automotive brands into the Pakistani market.