Pakistan Car Sales Surge as Economic Stability Improves

Karachi: Car sales in Pakistan experienced a significant increase in September 2025, with figures reaching 17,174 units, marking a 67% year-on-year and 22% month-on-month rise, according to data from the Pakistan Automotive Manufacturers Association (PAMA). The upturn is attributed to a more stable macroeconomic environment, the introduction of new car variants, lower interest rates, easing inflation, and improving consumer sentiment.

This surge contributed to a total of 42,267 units sold in the first quarter of the fiscal year 2026, reflecting a 53% increase from the 27,585 units sold during the same period last year.

Among the companies, Honda Atlas Cars demonstrated the highest growth, with sales increasing by 82% year-on-year and 2.15 times month-on-month, totaling 2,307 units in September. The City and Civic models saw sales rise by 73% year-on-year and 2.8 times month-on-month to 1,977 units, while the BRV and HRV models increased 2.6 times year-on-year, though they experienced a 12% month-on-month decline to 330 units.

Pakistan Suzuki Motor Company recorded a 79% year-on-year and 26% month-on-month growth with 8,997 units sold in September. The Suzuki Alto model showed continued high demand, with sales increasing by 50% year-on-year and 13% month-on-month. Other models such as Cultus, Swift, and Ravi also experienced substantial year-on-year growth.

Sazgar Engineering reported a 73% year-on-year and 36% month-on-month increase, selling 1,429 units, which included the newly launched HAVAL H6 PHEV variant. Hyundai Nishat recorded a 56% year-on-year growth but noted a slight 3% month-on-month decline, selling 1,175 units in September. Indus Motor Company posted a 33% year-on-year increase but a 7% month-on-month decrease, with sales totaling 3,152 units.

In the two and three-wheeler segment, sales increased by 21% year-on-year and 7% month-on-month, reaching 158,941 units in September. This brings the first quarter of the fiscal year 2026 sales to 432,000 units, marking a 35% year-on-year rise. Atlas Honda achieved its highest-ever monthly sales at 136,000 units in September, driven by the popularity of its CD70 bike.

Conversely, tractor sales fell by 27% year-on-year and 21% month-on-month to 790 units in September, mainly due to floods and weak farm economics. However, a production volume of 2,077 units during the month suggests underlying demand from the tractor scheme, indicating a potential rebound in the coming months.

Truck and bus sales surged 2.6 times year-on-year and 24% month-on-month to 824 units in September, marking an 88-month high. The first quarter of the fiscal year 2026 saw sales reaching 1,864 units, a twofold increase from the previous year’s figures.

Looking ahead, the positive momentum in auto sales is expected to continue in fiscal year 2026, driven by lower interest rates and a pipeline of new models set to be launched by various companies, including hybrid and plug-in hybrid engines.

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