Auto market shifts gears; sales jump 43pc in first eight months of FY26

Auto sales in Pakistan picked up significant speed during the first eight months of FY26, even as the tractor segment continued to face headwinds.

According to data shared by industry sources in Karachi, sales of cars, SUVs, pickups and vans reached 17,121 units in February. That marks a 42 per cent increase compared to the same month last year, although sales dropped 26 per cent from January due to fewer working days and the usual post-New Year slowdown in vehicle registrations.

Overall, vehicle sales from July to February climbed to 128,498 units – a 43 per cent rise from the 89,770 units recorded during the same period last year. Analysts say the yearly surge was driven by new players entering the market, easing inflation, lower interest rates and improving economic sentiment.

Among manufacturers, Sazgar Engineering Works reported February sales of 1,682 units – a sharp 90 per cent jump year-on-year, though down 16 per cent from January. Its cumulative sales for the eight-month period rose 54 per cent to 10,896 units, DAWN News reported on Wednesday.

Meanwhile, Indus Motor Company – the assembler of Toyota vehicles in Pakistan – posted 3,817 units in February, up 46 per cent compared with last year but 25 per cent lower than the previous month. Its total sales for July-February climbed 59 per cent to 29,440 units.

Honda Atlas Cars recorded 2,114 units in February, edging up 3 per cent year-on-year but falling 42 per cent month-on-month. Despite the dip, its eight-month sales reached 17,773 units, showing a strong 57 per cent rise from last year.

Hyundai Nishat Motors was the only automaker to post a slight annual decline, selling 1,021 units in February – down 3 per cent from a year earlier but roughly unchanged from January. However, its cumulative sales still jumped 38 per cent to 8,754 units.

At the same time, Pak Suzuki Motor Company logged 8,160 units in February, up 53 per cent year-on-year though 25 per cent lower than January. Its sales for the first eight months of the fiscal year increased 31 per cent to 59,456 units.

Industry expert Mashood Ali Khan said the sector is still on track to reach around 200,000 units in combined sales of cars, SUVs, pickups and vans by the end of the year.

Motorcycle and three-wheeler sales also showed healthy growth, rising 24 per cent year-on-year to 159,512 units in February, despite a 12 per cent monthly decline. Total sales in this category reached 1.3 million units during the July-February period – up 31 per cent.

Atlas Honda, maker of the iconic Honda CD70, sold 136,000 bikes in February, a 26 per cent annual increase but 13 per cent lower than January.

The tractor segment, however, remained under pressure. Sales rose 12 per cent year-on-year but dropped sharply by 31 per cent month-on-month to 1,717 units in February. Over the eight-month period, tractor sales declined 21 per cent to 17,151 units.

Truck and bus sales painted a brighter picture, climbing 37 per cent compared with last year despite a 40 per cent monthly drop, reaching 664 units in February. For the fiscal year so far, sales in this segment surged 82 per cent to 5,296 units.

Experts say motorcycles are driving strong demand, while trucks and buses are slowly gaining traction. However, tractors remain weighed down by policy challenges, and rising costs are squeezing auto parts manufacturers.

Looking ahead, analysts believe the sector could maintain its momentum through 2026 as borrowing costs fall and new hybrid and plug-in hybrid vehicles enter the market.