Strong June demand lifts FY2025-26 auto sales by 33% as consumers accelerate purchases before budget-driven price changes

ISLAMABAD: Pakistan’s auto sales jumped 30% in June 2026 from the previous month as consumers rushed to buy vehicles ahead of the federal budget amid expectations of higher prices, while total sales for fiscal year 2025-26 rose 33%, industry data showed.

According to the latest figures released by the Pakistan Automotive Manufacturers Association (PAMA), sales of cars, light commercial vehicles (LCVs), vans, jeeps and electric vehicles (EVs) climbed to 22,741 units in June, up 30% from May and 4% higher than the corresponding month last year.

The strong monthly performance was largely driven by pre-budget buying, as consumers advanced vehicle purchases before the announcement of the federal budget. Demand also benefited from a low base in May, when Eid holidays affected showroom activity and deliveries.

For the full fiscal year ended June 30, 2026, total auto sales increased 33% to 206,300 units, reflecting improving consumer confidence, easing macroeconomic conditions and stronger financing activity.

Pak Suzuki retains market leadership

Pak Suzuki Motor Company (PSMC) remained Pakistan’s largest automaker by sales volume, delivering 11,543 vehicles in June. Although monthly sales were down 13% from a year earlier, they increased 30% compared with May.

The company sold 97,117 vehicles during FY2025-26, marking a 34% increase from the previous fiscal year.

The Suzuki Alto continued to dominate Pakistan’s passenger car market with 7,239 units sold in June despite a 24% year-on-year decline. Other strong performers included the Suzuki Fronx with 1,717 units, Swift with 1,668 units, Every with 480 units, and Cultus with 439 units.

Honda and Sazgar deliver robust growth

Honda Atlas Cars Pakistan (HCAR) posted one of the strongest performances among major automakers, with June sales rising 64% year-on-year and 33% month-on-month to 2,972 units.

For FY2025-26, Honda’s cumulative sales climbed 53% to 28,015 units.

Sales of the Honda City and Civic reached 2,594 units, while deliveries of the BR-V and HR-V surged 286% from a year earlier to 378 units.

Sazgar Engineering (SAZEW) also maintained strong momentum, reporting 2,720 four-wheelers sold in June, representing growth of 102% year-on-year and 70% month-on-month.

The company sold 19,179 vehicles during FY2025-26, up 77% from the previous fiscal year.

Indus Motor posts mixed June performance

Indus Motor Company (INDU), the assembler of Toyota vehicles in Pakistan, sold 3,507 units in June, down 5% from a year earlier but largely unchanged from May.

Its cumulative FY2025-26 sales rose 34% to 44,646 units.

Sales of the Toyota Corolla and Yaris declined 9% year-on-year to 2,650 units, while deliveries of the Fortuner and Hilux increased 9% to 857 units.

Hyundai sales rebound from May

Hyundai Nishat Motors reported a sharp recovery in monthly sales, delivering 1,351 vehicles in June, up 71% from May despite a 7% decline compared with the same month last year.

The company sold 12,827 vehicles during FY2025-26, representing 17% annual growth.

The Hyundai Tucson remained the company’s best-selling model with 548 units, followed by the Porter with 431 units and the Elantra with 237 units.

Motorcycles and tractors continue upward trend

Pakistan’s two-wheeler market also remained strong, with industry sales rising 28% year-on-year and 17% month-on-month to 146,311 units in June.

Atlas Honda Limited (ATLH) led the segment by selling 130,507 motorcycles, up 27% from a year earlier and 15% higher than in May.

Three-wheeler sales doubled from the previous month to 3,267 units, all contributed by Sazgar Engineering.

In the tractor segment, industry sales increased 10% year-on-year and 17% month-on-month to 3,059 units.

Al-Ghazi Tractors (AGTL) recorded 1,020 units, up 88% from a year earlier, while Millat Tractors (MTL) sold 2,039 units, down 9% year-on-year.

Outlook

Analysts said June’s strong performance reflected improving consumer demand and buyers’ efforts to avoid anticipated post-budget price increases. They expect Pakistan’s automotive sector to remain supported by improving macroeconomic stability, easing inflation and expanding auto financing, although higher taxation and pricing adjustments introduced in the new fiscal year could moderate demand in the coming months.