Pakistan’s automotive sector hits high gear as sales surge nationwide

LAHORE: Pakistan’s automotive industry is shifting decisively into recovery mode, with October sales of cars, vans, pickups, and SUVs rising to 17,333 units, a 32% year-on-year increase and a 1% month-on-month uptick, according to data from the Pakistan Automotive Manufacturers Association (PAMA).

Cumulative sales for the first four months of FY26 reached 59,600 units, up 46% from 40,693 in the same period last year. A surge driven by economic stability and renewed consumer confidence.

“After a period of uncertainty, the market is showing strong signs of recovery,” said Waqas Ghani, head of research at JS Global and Pakistan TV Digital. He attributed the upbeat trend to improving macroeconomic conditions.

“A stable rupee, easing inflation, and lower borrowing costs are encouraging buyers to return to the market.”

Ghani explained that the turnaround stems from both supply and demand improvements.

“If we go back to 2022, there were import restrictions, plants were shutting down, and supply chains were disrupted. That is no longer the case. Production lines are now up and running,” he said.

On the demand side, he added, “Disposable incomes are improving, and with inflation falling and interest rates down 11%, auto loans have become more accessible. These factors combined have fueled the surge in sales.”

Still, the recovery is uneven. PAMA data shows Pakistan Suzuki Motor Company (PSMC) recorded an 18% MoM decline in October, driven by a company-wide reset and discontinuation of models such as Ravi, Bolan, Every VX, and Wagon R.

Swift sales fell 17%, Ravi plunged 84%, and Every dropped 28%, while Bolan has posted no sales since May 2025. Even so, PSMC’s YoY sales edged up 1%, and its July–October total rose 33% YoY to 27,234 units, underscoring resilience amid restructuring.

In sharp contrast, Indus Motor Company (IMC) delivered the strongest gains, posting 44% MoM growth to 4,529 units. Corolla, Yaris, and Cross models collectively rose 41% MoM and 78% YoY to 3,742 units, while Fortuner and IMVs climbed 58% MoM and 83% YoY to 787 units.

IMC’s four-month sales surged 66% YoY to 14,418 units, driven by robust demand for sedans and SUVs.

Hyundai Nishat recorded the highest YoY growth among automakers, rising 82% to 1,086 units, led by Tucson and Elantra, though MoM sales dipped 8%. Its four-month total reached 4,698 units, up 81% YoY.

Speaking to Pakistan TV Digital, Umair Shahid of Hyundai Central Sales said the improvement is closely tied to monetary easing. “Sales have increased thanks to the fall in bank interest rates,” he said.

Shahid added that in-house financing has strengthened the upswing: “Hyundai is offering promotions, including easy monthly installments and even 0%-markup purchase options, making it easier for customers to acquire vehicles.”

Honda Atlas Cars Limited (HACL) also posted strong results, with 72% YoY and 13% MoM growth in October, driven by steady demand for City and Civic models. Four-month sales rose 54% YoY to 7,487 units.

Growth extended beyond passenger cars. Two- and three-wheeler sales increased 20% YoY and 4% MoM in October to 165,500 units, nearing a four-year high. Atlas Honda Limited set a new benchmark with 140,178 CD70 units sold, surpassing its September 2025 record.

The agriculture and commercial sectors also saw momentum. Tractor sales jumped 67% YoY and 265% MoM to 2,886 units, buoyed by the Punjab Green Tractor Scheme, though four-month numbers slipped 15% YoY to 5,867 units. Truck and bus sales rose 118% YoY, despite a 7% MoM decline, bringing four-month totals to 2,630 units, up 106% YoY.

Looking ahead, analysts expect the upward trajectory to continue. In her latest report, Myesha Sohail of Topline Securities wrote: “Lower interest rates and the launch of new models — conventional, hybrid, and plug-in hybrid, are expected to sustain momentum in FY26.”

With rising demand across sedans, SUVs, motorcycles, tractors, and commercial vehicles, Pakistan’s auto market appears poised for a high-powered year, signaling renewed confidence for manufacturers, dealers, and consumers alike.