Pakistan’s small-car segment records sharp growth as consumers turn towards fuel-efficient vehicles amid elevated petrol prices and economic uncertainty.
KARACHI: Sales of passenger cars with engine capacities below 1,000cc increased 89 per cent year-on-year during the first two months of fiscal year 2026-27 (2MFY27), as consumers increasingly shifted towards fuel-efficient vehicles amid elevated petroleum prices.
According to data compiled by the Pakistan Automotive Manufacturers Association (PAMA) and AHL Research, sales of below-1,000cc cars reached 13,464 units during July-August 2026, compared with 7,126 units in the corresponding period of FY2025-26.
The strong growth in smaller cars came despite a monthly decline in August. Sales of below-1,000cc vehicles fell 25 per cent month-on-month to 5,754 units in August 2026 from 7,710 units in July. However, sales remained 26 per cent higher year-on-year than the 4,569 units recorded in August 2025.
Passenger-car sales rise 80% in 2MFY27
The overall passenger-car market recorded sales of 13,642 units in August 2026, down 21 per cent from 17,168 units in July but up 36 per cent compared with August 2025.
Cumulative passenger-car sales surged 80 per cent year-on-year to 30,810 units during 2MFY27.
Cars with engine capacities of 1,300cc and above recorded sales of 7,592 units in August, down 16 per cent month-on-month but up 54 per cent year-on-year.
Their cumulative sales reached 16,658 units in 2MFY27, an increase of 81 per cent from 9,218 units in the same period last year.
In contrast, 1,000cc cars remained under pressure. Sales declined 24 per cent month-on-month to 296 units in August from 392 units in July and fell 43 per cent year-on-year from 519 units.
During the first two months of FY27, sales of 1,000cc cars stood at 688 units, down 12 per cent from 783 units a year earlier.
Overall auto sales rise 41% in 2MFY27
Sales of cars, light commercial vehicles (LCVs), vans, jeeps and electric vehicles (EVs) totalled 15,558 units in August 2026, representing a 21 per cent decline from July but an 11 per cent increase over August 2025.
On a cumulative basis, sales of these categories reached 35,376 units during 2MFY27, up 41 per cent from 25,028 units in the corresponding period of FY2025-26.
The sharp monthly decline was attributed mainly to uncertainty surrounding the new auto policy and taxation of hybrid and plug-in hybrid electric vehicles (PHEVs).
Sazgar Engineering Works (SAZEW) had not yet reported its passenger-car and three-wheeler sales. Excluding SAZEW, overall auto volumes declined 19 per cent month-on-month but increased 20 per cent year-on-year in August.
Cumulative volumes excluding SAZEW rose 44 per cent year-on-year during 2MFY27.
Suzuki leads passenger-car sales
Pak Suzuki Motor Company (PSMC) remained the largest contributor to passenger-car sales, reporting 7,633 units in August, down 25 per cent month-on-month but up 7 per cent year-on-year.
The Suzuki Alto continued to dominate the market, with sales of 5,339 units, an increase of 27 per cent year-on-year.
Swift sales stood at 1,472 units, broadly unchanged from a year earlier, while Cultus sales fell 40 per cent to 296 units.
PSMC’s cumulative sales reached 19,911 units during July-August 2026, up 84 per cent year-on-year.
Indus Motor Company (INDU) sold 4,029 units in August, down 21 per cent month-on-month but up 19 per cent year-on-year.
Corolla and Yaris sales increased 21 per cent to 3,079 units, while Fortuner and Hilux sales rose 12 per cent to 950 units. Cumulative sales reached 9,118 units, up 35 per cent year-on-year.
Honda Atlas Cars (HCAR) recorded 2,633 units in August, broadly unchanged from July but 145 per cent higher than August 2025.
Civic and City sales surged 265 per cent to 2,553 units, while BR-V and HR-V sales fell 79 per cent to 80 units following the discontinuation of the BR-V.
HCAR’s cumulative sales doubled to 5,273 units during 2MFY27, representing a 105 per cent year-on-year increase.
Hyundai Nishat reported sales of 742 units, up 5 per cent month-on-month but down 39 per cent year-on-year.
Elantra sales increased 216 per cent to 458 units, whereas Tucson sales dropped sharply amid uncertainty surrounding taxes on hybrid vehicles and delays in the new auto policy.
Two-wheeler sales continue to grow
Two-wheeler sales remained strong, rising 4 per cent month-on-month and 22 per cent year-on-year to 176,789 units in August 2026.
During the first two months of FY27, two-wheeler sales reached 346,504 units, up 30 per cent from 266,962 units in the same period of FY26.
Atlas Honda remained the dominant player, selling 153,236 motorcycles in August, up 2 per cent month-on-month and 21 per cent year-on-year.
Its cumulative sales increased 31 per cent to 303,299 units during 2MFY27.
Tractor and commercial vehicle sales
Tractor sales stood at 1,052 units in August, down 15 per cent month-on-month but up 6 per cent year-on-year.
Cumulative tractor sales increased 5 per cent to 2,294 units during 2MFY27.
Al-Ghazi Tractors’ sales fell 23 per cent year-on-year to 243 units in August, while Millat Tractors recorded sales of 809 units, up 19 per cent year-on-year.
Truck sales reached 802 units in August, down 6 per cent month-on-month but up 35 per cent year-on-year. Cumulative truck sales rose 81 per cent to 1,656 units.
Bus sales increased 12 per cent month-on-month and 4 per cent year-on-year to 73 units, taking cumulative sales to 138 units, up 9 per cent year-on-year.
Three-wheeler sales, meanwhile, plunged 95 per cent month-on-month and year-on-year to only 147 units in August, largely because SAZEW’s sales figures had not been reported.
Overall, Pakistan’s auto market expanded significantly during the opening two months of FY27, although the monthly slowdown highlights continued uncertainty over taxation, the new auto policy, fuel costs and borrowing conditions.
The exceptional growth in below-1,000cc vehicles points to an increasing consumer preference for more fuel-efficient and affordable cars as petrol prices remain elevated.