Pakistan’s passenger car sales jump 39% to 206,445 units in FY26

Pakistan’s automobile industry recorded a second consecutive year of growth in FY2025-26, with total sales rising 41% to 1.63 million units as lower financing rates, stable prices and promotional offers supported demand, according to an AKD Securities research report.

Passenger car and light commercial vehicle sales increased 39% year-on-year to 206,445 units, comprising 155,631 passenger cars and 50,814 LCVs and pickups.

Truck sales rose 67% to 7,439 units, supported by stronger transport activity and enforcement of axle-load limits. Bus sales increased 25% to 985 units.

Two-wheeler sales climbed 31% to a record 1.93 million units, while three-wheeler sales rose 4% to 41,802 units.

Tractor sales, however, fell 1% to 28,791 units as higher prices and delays in government subsidy schemes affected demand.

In June 2026, total industry sales stood at 26,823 units, up 5% from a year earlier and 28% from May.

Passenger car and LCV sales increased 4% year-on-year to 22,741 units in June, although passenger car sales alone declined 13% to 15,378 units. LCV and pickup sales rose 73% to 7,363 units.

The report attributed slower passenger car growth in June to a high base, as small-engine vehicle sales had increased in the same month last year ahead of the withdrawal of concessional taxes on cars below 850cc.

It added that sales of hybrid and plug-in hybrid vehicles accelerated during the month as buyers moved ahead of higher taxation introduced in the FY2026-27 federal budget.

Pak Suzuki Motor Company remained the largest automaker by volume, with FY26 sales of 94,848 units, up 30%.

Indus Motor Company sold 44,646 units, an increase of 34%. 

Sales of Corolla, Yaris and Corolla Cross rose 42% to 35,831 units, while Fortuner and IMV sales increased 8% to 8,815 units.

Honda Atlas Cars recorded a 53% increase in sales to 28,015 units. 

Civic and City sales rose 47% to 24,416 units, while BR-V and HR-V volumes more than doubled to 3,599 units after the inclusion of the HR-V.

Sazgar Engineering Works posted 77% growth in four-wheel vehicle sales to 19,179 units, supported by the Haval H6 PHEV, Tank and its existing models.

Hyundai sales increased 18% to 12,937 units.

Among vehicle categories, sales of models above 1,000cc rose 50% to 80,730 units, while sales below 800cc increased 31% to 69,605 units. The 800cc to 1,000cc segment declined 2% to 4,953 units.

AKD Securities expects industry volumes to grow another 20% in FY2026-27, supported by further easing in financing rates, stable vehicle prices, competition among manufacturers and improved macroeconomic conditions.

However, the report warned that lower import duties could increase competition from imported vehicles and pressure sales and gross margins of local manufacturers. It also said the rationalisation of general sales tax on hybrid and plug-in hybrid vehicles could slow growth in those segments.

The brokerage said stronger competition could push local manufacturers to offer more discounts and financing incentives, while any relief in the upcoming auto policy could further support demand.