Auto sector rebounds strongly overall as EV segment struggles amid economic uncertainty
Electric vehicle (EV) sales in Pakistan dropped sharply by 43% in April 2026 compared to the previous month, despite growing concerns over fuel shortages and rising petroleum prices linked to the ongoing Middle East crisis.
The decline comes at a time when the government is urging fuel conservation and promoting energy efficiency amid disruptions in global oil supplies and rising domestic fuel costs.
Overall auto sales surge in April
According to data released by the Pakistan Automotive Manufacturers Association (PAMA), overall auto sales — including cars, SUVs, vans, pickups, and EVs — rose 108% year-on-year in April 2026 to 22,000 units.
On a month-on-month basis, sales increased 42% compared to March 2026, mainly due to seasonal recovery after Ramadan-related slowdown.
During the first 10 months of FY26, cumulative auto sales climbed 49% year-on-year to 166,100 units, reflecting improving consumer demand, stronger auto financing activity, and broader recovery in purchasing trends.
EV segment under pressure
Despite the overall rebound in vehicle sales, the EV segment experienced a sharp contraction, signaling that high prices, limited charging infrastructure, and economic uncertainty continue to weigh on electric vehicle adoption in Pakistan.
The decline also highlights the gap between government fuel conservation messaging and the practical challenges facing EV buyers in the local market.
Pak Suzuki leads monthly growth
Pak Suzuki Motor Company recorded the strongest monthly growth among major automakers, with sales rising 76% month-on-month to more than 11,000 units in April.
The company’s cumulative sales during 10MFY26 increased 42% year-on-year to 76,718 units.
The Alto remained the company’s top-selling model with 7,567 units sold, followed by the Swift at 2,205 units. Cultus and Every also posted notable month-on-month gains.
Indus Motor posts solid growth
Indus Motor Company reported sales of 4,330 units in April, reflecting a 33% increase year-on-year and a 12% rise compared to March.
Corolla and Yaris sales increased 37% year-on-year to 3,451 units, while Fortuner and Hilux contributed 879 units.
Cumulative sales for 10MFY26 rose 51% year-on-year to 37,643 units.
Honda Atlas maintains momentum
Honda Atlas Cars Pakistan posted sales of 2,716 units during April, up 59% year-on-year and 17% month-on-month.
Civic and City models recorded strong sales growth, while BR-V and HR-V SUVs also contributed positively to the company’s monthly performance.
Sazgar Haval continues expansion
Sazgar Engineering Works continued to gain traction in the SUV market through its Haval lineup.
The company reported four-wheeler sales of 2,225 units, up 305% year-on-year, with Haval models accounting for the majority of sales.
The newly introduced Tank 500 SUV also contributed 16 units during the month.
Motorcycle and tractor sectors also improve
The two-wheeler industry recorded strong performance, with total sales rising 41% year-on-year and 15% month-on-month to 187,724 units.
Atlas Honda Limited sold 163,048 motorcycles during the month, posting significant annual and monthly growth.
In the tractor segment, industry sales rose 76% year-on-year to 2,824 units, although monthly volumes declined slightly.
Fuel crisis yet to accelerate EV adoption
Analysts say the sharp decline in EV sales despite the fuel crisis indicates that Pakistan’s electric mobility transition still faces structural hurdles, including affordability concerns, limited charging networks, and policy uncertainty.
While rising petrol and diesel prices may eventually support EV demand, the market currently remains heavily dependent on conventional vehicles due to infrastructure and financing limitations.