Karachi, February 10, 2026 – Pakistan’s automobile sector posted a strong recovery in January 2026 as car sales surged to a 43-month high, driven by improving macroeconomic conditions, lower interest rates, and rising consumer confidence.
According to data released by the Pakistan Auto Manufacturers Association (PAMA), total car sales reached 23,055 units in January 2026, marking a robust 36% year-on-year (YoY) and 74% month-on-month (MoM) increase. This performance lifted cumulative sales during the first seven months of fiscal year 2025-26 (7MFY26) to 111,377 units, up 43% YoY from 77,686 units recorded in the same period last year.
Analysts at Topline Securities Limited attributed the sharp MoM growth mainly to new-year registrations, as buyers typically delay deliveries to secure January registration for better resale value. Meanwhile, strong YoY growth was supported by the entry of new players, easing inflation, declining interest rates, and improving overall economic sentiment.
Among major automakers, Honda Atlas Cars (HCAR) and Indus Motor Company (INDU) both recorded 43-month high monthly sales. HCAR posted a 64% YoY and 86% MoM increase to 3,620 units, led by strong demand for City and Civic models. INDU reported a 52% YoY and 2.2 times MoM growth to 5,060 units, driven by higher sales of Corolla, Yaris, and Cross models.
Pak Suzuki Motor Company (PSMC) saw sales jump 32% YoY and 67% MoM to 10,916 units, while Sazgar Engineering (SAZEW) achieved all-time high sales of 2,004 units. Hyundai Nishat sold 1,017 units, showing a marginal YoY decline.
Two- and three-wheeler sales also hit a record 181,790 units, up 31% YoY, while truck and bus sales surged 77% YoY to an all-time high of 1,101 units. However, tractor sales declined 9% YoY to 2,505 units.
Outlook: Analysts expect the positive momentum in auto sales to continue in 2026, supported by lower interest rates, easing inflation, improved economic activity, and the launch of new hybrid and plug-in hybrid models.