Automotive & EV | July 2026 | 4 min read
⚡ Quick Takeaways
⚡ Car sales in FY26 rose 39% to 155,631 units; SUVs and jeeps surged 41% to 50,814 units.
⚡ 2/3-wheeler sales hit an all-time high of 1.97 million units in FY26, up 30% year-on-year.
⚡ Sazgar Engineering recorded an all-time high monthly sales figure of 2,720 units in June, up 102% YoY.
⚡ Truck and bus sales surged 61% in FY26 to 8,424 units — the strongest growth in the sector.
⚡ Tractor sales were the lone laggard, declining 1% YoY in FY26 to 28,791 units.
Pakistan’s auto sector has delivered its strongest FY26 performance in years — with every major segment bar tractors posting double-digit growth. Lower interest rates, a wave of new model launches, easing inflation, and a pre-budget rush in June combined to push sales across cars, SUVs, 2-wheelers and commercial vehicles to multi-year highs, according to PAMA data.
| 155,631
Car Sales FY26 +39% YoY |
1.97m
2/3-Wheeler Sales All-time high, +30% YoY |
+61%
Trucks & Buses Strongest segment growth |
Sector-Wide Growth — What the Numbers Show
Every major auto segment grew in FY26 except tractors. Cars posted 39% growth to 155,631 units. Jeeps, SUVs, pickups and vans climbed 41% to 50,814. Trucks and buses recorded the steepest gain at 61%, reaching 8,424 units. The 2/3-wheeler category crossed 1.97 million units — an all-time high — at 30% growth. Only tractors bucked the trend, slipping 1% to 28,791 units for the year.
| ℹ️ What Drove the Growth Three factors converged to drive the FY26 recovery: lower interest rates that improved auto financing affordability, a wave of new model launches from both established and newly entered brands, and relatively lower inflation compared to the preceding two years. A pre-budget rush in June also pulled forward demand significantly. |
| Segment | FY26 Units | YoY Growth | June Units |
| Cars | 155,631 | +39% | 15,378 |
| Jeeps / SUVs / Vans | 50,814 | +41% | 6,363 |
| 2/3-Wheelers | 1,970,000+ | +30% | 178,508 |
| Trucks & Buses | 8,424 | +61% | 1,023 |
| Tractors | 28,791 | -1% | 3,059 |
Company-by-Company Scorecard
Sazgar Engineering was the standout performer of June, posting an all-time high monthly figure of 2,720 units — a 102% year-on-year and 70% month-on-month surge driven by pre-budget buying and deliveries of its Tank model. For the full year, Sazgar sold 19,179 units, up 77%.
Honda Atlas Cars had a strong year at 28,015 units — a four-year high and 53% growth — while June’s 64% YoY jump reinforced the momentum. Indus Motor Company and Pakistan Suzuki both delivered solid full-year growth of 34% each, though both posted YoY declines in June itself, suggesting some demand was pulled forward earlier in the year rather than concentrated at year-end.
| Company | FY26 Units | FY26 YoY | June YoY |
| Sazgar Engineering | 19,179 | +77% | +102% |
| Honda Atlas (HACL) | 28,015 | +53% | +64% |
| Indus Motor (IMC) | 44,646 | +34% | -5% |
| Pakistan Suzuki (PSMCL) | 97,117 | +34% | -13% |
| Hyundai Nishat | 12,937 | +18% | -7% |
| Atlas Honda (2W) | 1,689,000+ | +32% | — |
| ✅ Suzuki Fronx — New Model Impact Pakistan Suzuki’s Fronx — launched in May — sold 1,717 units in June alone, giving PSMCL a meaningful new revenue line in its first full month on the market. New model introductions have been one of the key demand catalysts in FY26, and the Fronx launch is a textbook example of that dynamic playing out. |
2-Wheelers and Commercial Vehicles — the Quiet Stars
The 2/3-wheeler segment’s 1.97 million unit total is the most significant volume story in Pakistan’s auto sector. Atlas Honda alone accounted for 1.689 million of those units — a 32% annual increase — cementing the category’s role as the country’s primary mobility channel. June’s 178,508 units represented 29% YoY and 4% month-on-month growth.
Trucks and buses grew 61% for the year and surged 39% YoY in June. Commercial vehicle demand correlates closely with economic activity — when freight moves, trucks sell — making the 61% growth a positive secondary indicator for the broader FY26 economic picture.
| ⚠️ Tractors — The Exception Tractor sales declined 1% in FY26 to 28,791 units — the only segment in negative territory. Agricultural mechanisation demand is sensitive to farm income, commodity prices, and government subsidy schemes. The mild decline likely reflects the sector’s specific dynamics rather than any broader auto market weakness. |
What FY27 May Look Like
Topline Securities expects the positive momentum to continue into FY27, with double-digit growth supported by the pipeline of new model variants and the entry of additional brands into the market. The Finance Act 2026’s excise duties on large imported vehicles may redirect some premium demand toward locally assembled options — a structural tailwind for established assemblers.
The key risks are interest rate direction, any reversal in inflation trends, and the external sector environment that constrains input costs for assemblers reliant on imported components.
Disclaimer: Sales data sourced from PAMA (Pakistan Automotive Manufacturers Association) FY26 release. Company-level figures cited via Topline Securities analysis. Data is subject to revision. This article is for informational purposes only.
