By Staff Reporter
KARACHI: Pakistan’s automotive sector kicked off the new fiscal year (FY26) with a robust 28 percent year-on-year (YoY) increase in sales of cars, light commercial vehicles (LCVs), pickups, and jeeps, reaching 11,034 units in July, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).
The growth follows a 43 percent surge in FY25, signalling sustained momentum despite a 49 percent month-on-month (MoM) decline attributed to a high base effect from June. The electric vehicle (EV) segment emerged as a standout, with the newly launched Honda ICON e EV scooter driving significant interest.
PAMA reported production and sales of 313 and 303 units, respectively, for the model. United, a traditional petrol-powered motorcycle manufacturer, also made strides in the EV space, recording production and sales of 229 and 270 units for its electric bikes in July 2025, a sharp rise from 88 and 74 units a year earlier.
In the four-wheeler category, sales of key models showed strong gains. Combined sales of Honda Civic and City reached 1,143 units, up 45 percent from 790 units in July 2024. Toyota’s Corolla, Yaris, and Cross models posted a 119 percent jump to 2,418 units from 1,106, while Suzuki Swift sales edged up 4 percent to 522 units from 502.
Hyundai’s Elantra and Sonata also saw improved demand, with sales rising to 141 and 66 units, respectively, compared to 33 and 34 units a year ago. Suzuki Cultus sales climbed to 239 units from 96.
However, not all models fared well. Suzuki Alto sales dipped to 2,327 units from 2,869, and PAMA data indicated no production for the Suzuki WagonR, suggesting that Pak Suzuki Motor Company Ltd may have discontinued the model.
In the SUV and crossover segment, Toyota Fortuner and Revo sales rose to 919 units from 558, while Hyundai Tucson and Honda BR-V/HR-V recorded sales of 546 and 357 units, up from 113 and 141, respectively.
Sazgar’s Haval and the JAC X200 also posted gains, with sales of 1,079 and 149 units, compared to 824 and 102 units in July 2024. Hyundai’s Porter and Santa Fe models saw sales increase by 13 percent to 395 units and 33 percent to 77 units, respectively.
Myesha Sohail, an analyst at Topline Securities, attributed the YoY growth to “a relatively stable macroeconomic environment, lower interest rates, and easing inflation,” which have bolstered consumer confidence.
She noted, however, that the sharp MoM decline was due to a high base in June 2025, driven by pre-budget buying and accelerated purchases ahead of anticipated fiscal changes. The two- and three-wheeler segment also showed strength, with sales rising 44 percent YoY to 122,441 units, though they fell 12 percent MoM.
Atlas Honda led the market with 104,276 units sold, up from 70,255, while Suzuki’s two-wheeler sales reached 2,518 units, compared to 1,643 a year earlier. Yamaha reported sales of 586 units, nearly doubling from 302 in July 2024. In contrast, the tractor segment struggled, with sales dropping 18 percent YoY and 57 percent MoM to 1,195 units, reflecting weak farm economics and subdued rural demand. Truck and bus sales, however, rose 22 percent YoY to 374 units, though they declined 49 percent MoM.
Looking ahead, Sohail expressed optimism about the sector’s trajectory, stating that auto sales are expected to “maintain momentum through FY26, supported by lower interest rates and a strong pipeline of new model launches, particularly in hybrid and plug-in hybrid categories.”
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