Low Interest Rates, New Model Launches And Easing Inflation Drive 155,631 Car Sales And A Record 1.97 Million Two And Three-Wheelers In FY26
According to Dawn, barring tractors, the sales of Pakistan’s entire auto sector grew 25–67 per cent year-on-year in FY26, according to data released by the Pakistan Automotive Manufacturers Association.
Car sales in FY26 stood at 155,631 units, up 39 per cent, while sales of jeeps, SUVs and vans surged 41 per cent to 50,814 units, driven by low interest rates that fuelled higher auto financing, new model launches by both established and newer players, and relatively lower inflation.
Honda Atlas Cars reached a four-year high of 28,015 units in FY26, up 53 per cent, while Pakistan Suzuki’s full-year sales rose 34 per cent to 97,117 units. Indus Motor Company sold 44,646 units, up 34 per cent. Sazgar Engineering recorded an all-time high monthly figure of 2,720 units in June alone, up 102 per cent year-on-year.
Two and three-wheeler sales hit an all-time high of 1.97 million units in FY26, up 30 per cent, with Atlas Honda alone accounting for 1.689 million units. Truck and bus sales surged 61 per cent to 8,424 units. Tractor sales, however, fell one per cent to 28,791 units.
Topline Securities expects the positive momentum to continue into FY27, with double-digit growth supported by new variant launches and new brand entries.
Pakistan’s auto sector recovery is a barometer for broader economic confidence. When 1.97 million two-wheelers sell in a single year, that’s not a luxury story; it is the middle and lower-middle class voting with their wallets on whether conditions have improved enough to take on a purchase. The sector’s performance in FY27, particularly once diesel fuel price impacts filter through transport and logistics costs, will be the real test.
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