Pakistan’s Auto Industry Rebounds with 53% Surge in Car Sales

Pakistan’s automotive sector has made an impressive comeback, with car sales rising 53% year-on-year (YoY) in the first quarter of FY26, according to data from JS Global. This surge follows a 67% YoY increase in September, signaling a strong auto industry recovery in Pakistan fueled by renewed consumer confidence and improved production capacity.

🔝 Pak Suzuki Leads Pakistan’s Car Sales Growth

Pak Suzuki Motor Company (PSMC) remains the frontrunner in Pakistan’s auto market, posting a 51% YoY increase in the first quarter with 19,831 units sold.

The company’s compact and fuel-efficient cars continue to dominate the roads.

• The Suzuki Alto retained its top-selling position with over 11,200 units sold, marking a 40% YoY growth.

• The Suzuki Swift achieved an outstanding 307% YoY surge, while the Cultus doubled its numbers with a 104% YoY increase.

This strong performance reflects the rising demand for small, budget-friendly cars in Pakistan, as more consumers seek economical options amid fluctuating fuel prices and inflation.

🚙 Toyota and Honda Drive Auto Industry Recovery in Pakistan

The mid-range and premium car segments also experienced solid growth, highlighting broad-based momentum across the industry.

Indus Motor Company (IMC) — Toyota’s local assembler — recorded a 61% YoY jump in total sales. Its Fortuner and IMV series saw a 67% YoY increase, while Corolla, Yaris, and Corolla Cross grew by 41% YoY.

Honda Atlas Cars (HCAR) followed with a 46% YoY increase, led by its City and Civic models, which together surged 107% YoY.

The performance of these leading automakers underscores Pakistan’s growing appetite for mid-size and premium vehicles as economic activity rebounds.

🚜 SUV and LCV Sales Surge Amid Pakistan’s Auto Market Recovery

The SUV and light commercial vehicle (LCV) segments also experienced remarkable growth:

• Sazgar Engineering Works Ltd. (SAZEW) reported an 87% YoY increase in vehicle sales.

• The DFML segment, which includes SUVs and LCVs, grew by an astonishing 175% YoY, reflecting Pakistan’s rising preference for multi-purpose and family-oriented vehicles.

This surge shows a clear shift in buyer preferences toward versatile vehicles suitable for both personal and business use.

🌾 Tractor Sales and Rural Demand Boost Automotive Sector

Beyond passenger cars, tractor sales in Pakistan rose 76% YoY, supported by strong rural demand and a reviving agricultural sector. However, heavy commercial vehicle sales showed mixed results, with some companies like MNTL and AGTL reporting slower recovery due to weaker logistics and industrial transport demand.

🔮 Future Outlook: Pakistan’s Car Market Poised for Continued Growth

Analysts predict that the car sales momentum in Pakistan will likely continue, driven by economic stabilization, import flexibility, and improved auto financing options.

With Pak Suzuki, Toyota, and Honda leading the charge, Pakistan’s auto industry is firmly on the road to recovery, offering optimism for manufacturers, dealers, and consumers alike.

Read More: Pak Suzuki Motor Company Launches Modern Compact SUV in Pakistan