Strong demand for cars, bikes, and commercial vehicles offsets tractor slowdown; industry eyes 200,000-unit target by year-end.
KARACHI: Pakistan’s auto market accelerated sharply in the first eight months of FY26, with passenger vehicles and motorcycles leading the growth, even as the tractor segment faced persistent challenges.
Industry sources reported that February sales of cars, SUVs, pickups, and vans reached 17,121 units, marking a 42% increase from February last year, though down 26% from January due to fewer working days. Overall, July–February vehicle sales rose 43% to 128,498 units from 89,770 units a year earlier. Analysts attribute the surge to new entrants, easing inflation, lower interest rates, and improved economic sentiment.
Among manufacturers, Sazgar Engineering Works posted 1,682 units in February, a 90% year-on-year jump, bringing its eight-month total to 10,896 units, up 54%. Indus Motor Company sold 3,817 units in February, rising 46% year-on-year, with cumulative sales of 29,440 units, a 59% increase. Honda Atlas Cars reached 17,773 units over eight months, up 57%, while Hyundai Nishat Motors’ total climbed 38% to 8,754 units. Pak Suzuki sold 8,160 units in February, lifting its FY26 total to 59,456 units, a 31% rise.
Motorcycles and three-wheelers also grew, reaching 159,512 units in February (up 24% year-on-year), with Atlas Honda selling 136,000 bikes. Truck and bus sales rose 37% annually to 664 units in February, with FY26 totals at 5,296 units, up 82%. Tractor sales, however, fell 21% to 17,151 units over eight months.
Industry experts remain optimistic, projecting combined auto sales could reach 200,000 units by the year’s end, fueled by falling borrowing costs and the introduction of hybrid and plug-in hybrid vehicles.
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