
Pakistan’s auto industry started the fiscal year 2025–26 on a strong note, with car sales jumping 53% year-on-year (YoY) during the first quarter (July–September), signalling renewed consumer confidence and improving market conditions.
As reported by the Pakistan Automotive Manufacturers Association (PAMA), there were total passenger car sales of 42,267 cars in the first quarter of FY26, compared to 27,585 spec'd cars in the first quarter of FY25.
According to expert analysis of the returns, the July calculations reveal that easing inflation, falling interest rates, and improved financing options lifted car purchase demand.
Data collected by Arif Habib Limited reports that Pakistan's sales of cars in September 2025 were 17,200 units in the month, up by 22% month-on-month (MoM) and up 67% from the previous year.
Honda Atlas Cars was the leading recovery of sales results with a sell-through of its Civic and City models, which were higher by 183% MoM or 1,977 units. Pak Suzuki Motor Company also posted a significant record, up 190% MoM for Ravi sales, yielding 1,722 units sold for the month. Sazgar Engineering had a modest bump of 36% MoM or 1,426 units.
On a segment basis, over 1,300cc vehicles grew 26% MoM or 6,224 units sold, and sub-1,000cc vehicles were up 19% MoM on sell-through of 5,439 units. However, the 1,000cc category fell 17% MoM in sales or 433 units.
Indus Motor Company (IMC) reported a 7% decline MoM, selling 3,152 vehicles, reporting demand weakness for Fortuner and Hilux; however, the Corolla and Yaris models showed nominal gains.
Two-wheeler sales increased on a MoM basis by 8%, registering lead sales of 135,603 in Atlas Honda motorcycles, while three-wheelers and tractors were down significantly by -14% and -21% on lower sales, respectively.