Pakistan’s automobile market continued to show strong annual growth in February, although sales declined compared with the previous month.

According to data released by the Pakistan Automotive Manufacturers Association (PAMA), total car sales reached 17,121 units in February 2026, marking a 42% increase year-on-year but a 26% decline compared with January.

During the first eight months of FY2026, cumulative car sales stood at 128,498 units, reflecting a 43% increase from 89,770 units recorded during the same period last year.

The month-on-month drop was mainly to a high base effect, as vehicle sales usually surge in January due to new-year registrations, along with fewer working days in February. Meanwhile, the strong yearly growth was supported by new market entrants, declining interest rates, easing inflation, and improving economic sentiment.

Company Performance

Among major manufacturers:

• Sazgar Engineering Works Limited sold 1,682 units, up 90% year-on-year but 16% lower month-on-month.
• Indus Motor Company recorded 3,817 units, showing 46% YoY growth but a 25% MoM decline. Sales of Corolla, Yaris, and Cross models rose 70% YoY but dropped 24% MoM to 3,102 units, while Fortuner and IMV sales fell 10% YoY and 27% MoM to 715 units.
• Honda Atlas Cars Pakistan Limited reported 2,114 units, up 3% YoY but down 42% MoM. City and Civic sales slipped 1% YoY and 45% MoM to 1,861 units, while BR-V and HR-V sales increased 42% YoY but were 1% lower month-on-month, totaling 253 units.
• Hyundai Nishat Motors sold 1,021 units, marking a 3% YoY decline while remaining flat month-on-month.
• Pak Suzuki Motor Company recorded the highest volumes with 8,160 units, up 53% YoY but 25% lower MoM.

Two- and Three-Wheeler Segment

Sales of motorcycles and rickshaws reached 159,512 units in February, reflecting a 24% YoY increase but a 12% decline compared with January. Cumulative sales for 8MFY26 climbed to around 1.3 million units, up 31% year-on-year.

Atlas Honda Limited, maker of the popular Honda CD70, recorded 136,000 units, representing a 26% YoY rise but a 13% MoM drop.

Other Segments

• Tractor sales rose 12% YoY but fell 31% MoM to 1,717 units in February.
• Truck and bus sales increased 37% YoY, though they declined 40% MoM to 664 units.

Outlook

Topline Securities expects auto sales momentum to remain positive in 2026, supported by lower interest rates, easing inflation, and improved economic activity. The introduction of new hybrid and plug-in hybrid vehicles is also likely to strengthen demand in the coming months.