Pakistan’s auto sector extended its recovery in March 2026, with car sales rising 40% year-on-year, though a sharp drop in volumes at Pak Suzuki Motor Company pulled overall sales down 9% month-on-month. According to a report by Topline Securities.
According to data released by Pakistan Automotive Manufacturers Association, total car sales clocked in at 15,531 units in March, taking cumulative sales for the first nine months of FY26 to 144,029 units — up 43% compared to the same period last year.
The sequential decline was largely driven by a 23% month-on-month fall in Suzuki’s sales, even as other automakers posted modest growth. Ex-Suzuki sales were up 4% over February, suggesting underlying demand remains intact.
The broader uptrend continues to be supported by easing inflation, lower interest rates, and improving consumer sentiment, alongside the entry of new players in the market.
Among individual players, Sazgar Engineering Works recorded one of the strongest performances, with sales surging 84% year-on-year to 1,734 units in March. Honda Atlas Cars also posted robust growth, with volumes rising 63% YoY and 10% MoM to 2,324 units, driven largely by higher sales of City and Civic models.
Meanwhile, Indus Motor Company — maker of Toyota vehicles — reported a 24% YoY increase in sales to 3,873 units, with its Corolla and Yaris lineup leading the growth.
In contrast, Hyundai Nishat Motors was the only major player to post a decline on both yearly and monthly bases, with sales dropping 3% YoY and 9% MoM to 928 units. Suzuki, despite its monthly decline, still recorded a 38% YoY increase to 6,250 units.
Beyond passenger cars, the two- and three-wheeler segment maintained strong momentum. Sales rose 31% YoY and 4% MoM to 166,633 units in March, taking 9MFY26 volumes to 1.43 million units. Atlas Honda remained the dominant player, with sales climbing 34% YoY to around 142,000 units.
Tractor sales saw a sharp rebound, jumping 96% YoY and 63% MoM to 3,008 units in April, while truck and bus sales increased 23% YoY but declined 15% on a monthly basis to 566 units.
Industry analysts expect the positive trajectory to continue through 2026, with demand likely to be supported by lower borrowing costs and the introduction of hybrid and plug-in hybrid models, although monthly volatility may persist due to company-specific supply and pricing dynamics.
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