Pakistan’s automotive sector recorded a surge in sales in January, with cars, pickups, vans, and SUVs reaching 23,055 units, a 43-month high. This represents a 36% year-on-year (YoY) increase and a 74% rise compared to December 2025.
Cumulative sales for the first seven months of FY26 rose 43% to 111,377 units, up from 77,686 units during the same period last year. Analysts attribute the strong monthly spike to new-year registrations, as buyers often delay deliveries to secure January registrations for better resale value.
Industry players also benefited from new market entrants, easing inflation, lower interest rates, and improved macroeconomic sentiment. Sazgar Engineering Works Ltd (SEWL) reported record sales of 2,004 units in January, a 72% month-on-month increase, bringing 7MFY26 sales to 9,214 units, a 49% rise YoY.
Indus Motor Company (IMC) and Honda Atlas Cars Ltd (HACL) also reported 43-month high sales. HACL sold 3,620 units in January, up 64% YoY and 86% MoM, driven by strong demand for Honda City and Civic models. IMC posted 5,060 units, up 52% YoY and 119% MoM, with Corolla, Yaris, and Cross models leading growth.
Two- and three-wheeler sales reached an all-time high of 181,790 units in January, a 31% YoY increase, taking cumulative 7MFY26 sales to 1.1 million units. Atlas Honda Ltd, maker of the CD70 bike, sold 157,059 units in January alone.
Tractor sales, however, fell 9% YoY and 26% MoM to 2,505 units, with total 7MFY26 sales declining 23% YoY. In contrast, truck and bus sales surged, hitting 1,101 units in January, a 77% YoY increase and triple the previous month’s sales, bringing cumulative 7MFY26 sales to 4,633 units, up 92% YoY.
Industry experts expect positive momentum to continue throughout 2026, supported by lower interest rates and the introduction of hybrid and plug-in hybrid models.