Pakistan’s vehicle market records a strong start to FY2026-27 as passenger car sales more than double, while post-budget normalisation weighs on monthly demand.
KARACHI: Pakistan’s auto sales jumped 79% year-on-year (YoY) to 19,800 units in July 2026, marking a strong start to the new fiscal year, although sales declined 13% month-on-month (MoM) as the pre-budget buying momentum seen in June faded.
According to data from the Pakistan Automotive Manufacturers Association (PAMA), sales of cars, light commercial vehicles (LCVs), vans, jeeps and electric vehicles (EVs) reached 19,800 units during the first month of FY2026-27.
The strong annual growth was primarily driven by passenger cars, which recorded a 141% YoY increase. However, the monthly decline reflected the normalisation of pre-budget purchases made in June, while uncertainty surrounding the new Auto Policy also weighed on bookings during July.
Suzuki leads passenger vehicle growth
Pak Suzuki Motor Company Limited (PSMC) recorded sales of 10,120 units in July, registering a 175% YoY increase, although sales were down 12% from the previous month.
The Alto remained the country’s best-selling model, with sales reaching 7,217 units, up 210% YoY. Swift sales rose 287% to 2,018 units, while Every sales increased 114% to 493 units. Cultus sales stood at 392 units, up 64% YoY.
Indus Motor Company Limited (INDU) sold 5,089 units, up 53% YoY and 45% MoM. Corolla and Yaris sales increased 77% YoY to 4,283 units, while Fortuner and Hilux sales declined 12% to 806 units.
Honda Atlas Cars (HCAR) posted sales of 2,640 units, representing a 76% YoY increase and an 11% MoM decline. Civic and City sales climbed 121% YoY to 2,529 units, while BR-V and HR-V sales fell 69% to 111 units following the company’s confirmation of the BR-V’s discontinuation.
Sazgar Engineering (SAZEW) recorded four-wheeler sales of 663 units, down 39% YoY and 76% MoM, with uncertainty surrounding the new Auto Policy affecting market activity.
Ghandhara Automobiles Limited (GAL) reported pickup sales of 357 units, showing growth of 140% YoY and 14% MoM.
Hyundai Nishat reported sales of 710 units, down 42% YoY and 47% MoM. Tucson sales fell 69% YoY to 171 units, while Porter sales declined 28% to 286 units. Elantra sales, however, increased 50% YoY to 211 units.
Two-wheeler sales remain strong
The two-wheeler segment also maintained strong annual growth, with industry sales rising 39% YoY to 169,715 units, although they declined 2% MoM.
Atlas Honda Limited (ATLH) reported sales of 150,063 units, representing a 43% YoY increase.
Three-wheeler sales increased 12% YoY to 2,701 units but dropped sharply by 47% MoM. Sazgar Engineering contributed 2,562 units to the bikes and three-wheeler segment, showing an 81% YoY increase.
Trucks and buses post strong annual growth
The commercial vehicle segment also recorded significant annual growth in July.
Truck sales increased 169% YoY, while bus sales rose 14% YoY. GAL reported truck sales of 111 units, up 247% YoY and 31% MoM.
Ghandhara Industries Limited (GHNI) posted sales of 424 units, representing a 212% YoY increase. Hino sales stood at 50 units, up 14% YoY but down 21% MoM.
Tractor sales rise annually but plunge monthly
Tractor sales increased 4% YoY but declined sharply by 59% MoM to 1,242 units.
Al-Ghazi Tractors Limited (AGTL) recorded sales of 414 units, up 29% YoY, while Millat Tractors Limited (MTL) sold 828 units, down 5% YoY.
Overall, July’s auto sales data points to a strong annual recovery in Pakistan’s automotive market, but the sharp monthly decline highlights the impact of post-budget normalisation and uncertainty surrounding the new Auto Policy.
The performance of bookings and sales in the coming months will provide a clearer indication of whether the sector can sustain its strong start to FY2026-27.