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Pakistan’s auto sector has started the new fiscal year on a high note. According to recent data, sales of cars, SUVs, pickups and vans rose by 53% year-on-year, reaching 42,267 units in Q1 FY26 compared to 27,585 units in the same period last year.
The sector benefited from a more stable economic environment, lower interest rates, easing inflation, and the launch of new models. This marks a sharp rebound after the slowdown of FY23 and early FY24, when high inflation and import restrictions severely hit demand.
Record Monthly Growth in September
September 2025 saw a remarkable boost in sales. The auto industry sold 17,174 units, up 67% year-on-year and 22% month-on-month.
Honda Atlas Cars led the surge with an 82% YoY and 115% MoM increase, selling 2,307 units. Pak Suzuki Motor Co followed with 8,997 units, up 79% YoY. Indus Motor Company recorded 3,152 units, while Hyundai Nishat and Sazgar Engineering Works also posted strong growth thanks to fresh variants like the HAVAL H6 PHEV.
Pakistan’s Auto Company-wise Sales Performance
| Company / Segment | Sep 2025 Sales (YoY / MoM) | Q1 FY26 Sales (YoY) |
| Honda Atlas Cars | 2,307 units (+82% / +115%) | 4,880 units (+46%) |
| Pak Suzuki Motor Co | 8,997 units (+79% / +26%) | 19,831 units (+51%) |
| Indus Motor Company | 3,152 units (+33% / -7%) | 9,889 units (+61%) |
| Hyundai Nishat | 1,175 units (+56% / -3%) | 3,612 units (+80%) |
| Sazgar Engineering Works | 1,429 units (+73% / +36%) | 3,557 units (+37%) |
Bikes, Trucks and Tractors Show Mixed Trends
Two- and three-wheeler sales climbed 21% YoY in September to 158,941 units, with Atlas Honda hitting its highest-ever monthly sales of 135,603 units. Truck and bus sales also surged 158% YoY, reflecting improving commercial activity.
However, tractor sales dipped 27% YoY to 790 units due to weaker farm economics. Still, higher production hints at pent-up demand, possibly tied to upcoming subsidy schemes.
The strong Q1 FY26 performance signals renewed momentum for Pakistan’s auto industry. If economic stability continues, the sector could maintain this growth trajectory in the coming quarters.
