Alto leads as Pakistan’s car sales jump 60pc

Passenger car sales in Pakistan surged 60 per cent year-on-year to 21,635 units in October 2026, reflecting a strong recovery in the automobile market. Sales nearly doubled compared with September, although industry representatives warned that delays in announcing the new auto policy could undermine the sector’s progress.

Data released by the Pakistan Automotive Manufacturers Association (PAMA) showed that car sales stood at 13,513 units in October last year. The latest figure also represented a 98 per cent increase from the 10,939 units sold in September.

However, vehicle production declined five per cent month-on-month to 16,112 units in October, compared with 17,040 units in September. On a yearly basis, production increased 6.6 per cent from 15,112 units. Sales exceeded production by 5,523 units during the month.

Small cars remained the biggest contributor to the increase. Sales of vehicles with engines below 1,000cc climbed 118 per cent year-on-year to 11,885 units, accounting for nearly 55 per cent of total passenger car sales.

Suzuki Alto dominated this segment, with sales reaching 11,363 units. This was a 130 per cent increase from 4,931 units in October 2025. Its sales also more than tripled compared with 3,354 units in September. Suzuki Every recorded sales of 522 units, slightly higher than the 516 units sold a year earlier.

In the 1,000cc category, Suzuki Cultus sales increased 26 per cent to 653 units against 517 units in October last year. The model had recorded sales of only 138 units in September.

The 1,300cc and above category also registered growth, with sales rising 20 per cent year-on-year to 9,061 units. Sales in this segment increased 30 per cent compared with the previous month.

Suzuki Swift led the growth, with sales jumping 175 per cent to 3,214 units from 1,170 units a year earlier. Toyota’s Corolla, Yaris and Corolla Cross collectively recorded sales of 3,496 units, down seven per cent year-on-year.

Honda Civic and City sales declined 14 per cent to 1,933 units. Meanwhile, Hyundai Elantra sales increased 23 per cent to 401 units, while 17 units of the Sonata were sold during the month.

In the electric vehicle segment, Dewan’s Honri-Ve recorded sales of 36 units, compared with 20 units in October 2025. However, its sales declined from 42 units in September.

During the first four months of the current fiscal year, from July to October, passenger car sales increased 48 per cent to 63,507 units against 42,831 units in the corresponding period last year. Production also rose 24 per cent to 63,726 units.

Cars with engines above 1,300cc recorded a 42 per cent increase in cumulative sales to 32,666 units. Sales of vehicles below 1,000cc rose 62 per cent to 29,161 units. However, the 1,000cc category witnessed a 15 per cent decline, with sales falling to 1,479 units.

Other segments of the automobile industry delivered mixed results. Sales of jeeps and pickups dropped 27 per cent year-on-year to 2,783 units in October. They also fell 33 per cent compared with September, while production declined 40 per cent month-on-month to 2,959 units.

PAMA attributed the continued pressure on this segment, particularly hybrid, plug-in hybrid and range-extended electric vehicles, to uncertainty surrounding the sales tax treatment. Cumulative sales of jeeps and pickups fell 32 per cent during the first four months of FY27, while production declined five per cent.

The truck and bus segment recorded a more positive performance. Sales increased 33 per cent year-on-year to 1,018 units in October and were nine per cent higher than in September. During July-October, sales rose 42 per cent, while production increased 55 per cent.

Farm tractor sales also recovered significantly, rising 44 per cent year-on-year to 4,154 units in October. Compared with September, sales surged 129 per cent. Production increased 132 per cent month-on-month to 4,171 units. PAMA linked the improvement to the announcement of the Punjab Green Tractor Scheme. Cumulative tractor sales were up 41 per cent.

Meanwhile, sales of two- and three-wheelers increased 22 per cent year-on-year to 199,908 units in October, although they slipped one per cent from the previous month. Their cumulative sales during the first four months of FY27 rose 27 per cent.

Despite the strong increase in car sales, PAMA expressed concern over the government’s delay in announcing the new auto policy. The association said uncertainty was affecting purchasing decisions, while vehicle inventories continued to accumulate.

It warned that the prolonged delay was damaging the industry’s recovery and could cause harm that might be difficult to reverse. PAMA also questioned the lack of consultation with industry representatives since June 2026, when the Ministry of Industries and Production and the Engineering Development Board last held discussions with the sector.

Sania Irfan of Topline Research, however, expected automobile sales to maintain positive momentum during FY27. She forecast double-digit growth, supported by the introduction of new vehicle variants and the entry of additional brands into the Pakistani market.