Pakistan Auto Sales Jump 62% in August, Signaling sector Recovery
KARACHI: Pakistan’s automotive sector demonstrated strong recovery in August, with combined sales of cars, SUVs, pickups, and vans reaching 14,050 units – a 62% increase year-on-year and a 27% rise month-on-month. The rebound reflects a stabilizing economic climate, new model introductions, decreasing interest rates, easing inflation, and improved consumer confidence following a period of economic uncertainty.
Overall vehicle sales for the frist two months of fiscal year 2026 (2MFY26) totaled 25,093 units, a 45% increase compared to the 17,288 units sold during the same period last year.
pak Suzuki Motor company (PSMC) spearheaded the growth, reporting August sales of 7,154 units – a 96% year-on-year and 94% month-on-month surge.This monthly increase is partially attributed to a low base effect following a sales spike in june ahead of a Goods and Services Tax (GST) increase implemented on July 1, 2025.PSMC’s 2MFY26 sales reached 10,834 units, a 33% year-on-year increase.
Hyundai Nishat experienced an 83% year-on-year increase, selling 1,212 units in August, despite a slight 1% month-on-month decline. Demand for the Tucson and Elantra models fueled the company’s growth, bringing July-August FY26 sales to 2,437 units, a 95% increase year-on-year.
Indus Motor Company (IMC) recorded a 60% year-on-year growth and a 2% month-on-month increase, with 3,400 units sold in August. IMC’s 2MFY26 sales rose 78% to 6,737 units compared to the previous fiscal year.
Honda Atlas cars (HAC) saw a decline, with august sales falling 7% year-on-year and 28% month-on-month to 1,073 units. However, its July-August FY26 sales increased 24% year-on-year to 2,573 units.
Sazgar Engineering Works (SAZEW) reported a 10% year-on-year increase,but a 3% month-on-month dip to 1,049 units in August,including sales of its newly launched HAVAL H6 PHEV variant. SAZEW’s 2MFY26 sales reached 2,128 units, a 20% year-on-year increase.
Two- and three-wheeler sales also experienced important growth,surging 42% year-on-year and 19% month-on-month to 148,063 units in August,pushing 2MFY26 sales to 273,000 units – a 44% year-on-year increase.
In contrast, tractor sales were negatively impacted by recent floods and challenging farm economics, dropping 63% year-on-year and 17% month-on-month to 996 units in August. July-August FY26 tractor sales plummeted 47% to 2,191 units.
Truck and bus sales demonstrated a substantial rise, with 666 units sold in August, up 122% year-on-year and 78% month-on-month. This brought 2MFY26 sales to 1,040 units, a 71% increase over 2MFY25.
Topline securities analyst Myesha Sohail anticipates continued positive momentum in auto sales throughout FY26, driven by sustained lower interest rates and the introduction of new models, including hybrid and plug-in hybrid variants.
Published in Dawn, September 12th, 2025
