July auto sales slow 13%

Volumes still up 80% YoY; passenger cars lead with 141% growth

KARACHI:

Pakistan's automobile sales rose around a whopping 80% in July 2026, the first month of fiscal year 2026-27, despite a monthly decline, according to the Pakistan Automotive Manufacturers Association (PAMA).

Total sales of cars, light commercial vehicles, vans, jeeps and electric vehicles reached 19,818 units, marking an increase of around 80% year-on-year from 11,034 units in July 2025. On a month-on-month basis, however, volumes declined 13% from 22,741 units recorded in June 2026.

"The YoY growth was led by strength across passenger cars, which grew 141% YoY," observed Leena Abid, auto analyst at Arif Habib Limited (AHL). While the MoM decline came as pre-budget buying that had lifted June sales normalised, alongside uncertainty surrounding the new Auto Policy, which weighed on bookings during the month, she added.

"The YoY rise was driven by new market entrants, new product launches and a surge in auto financing. Meanwhile, the MoM decline was primarily due to uncertainty surrounding the new auto policy," noted Myesha Sohail, auto analyst at Topline Securities.

Passenger car sales formed the bulk of the improvement. Indus Motor Company posted sales of 5,089 units, up 53% year-on-year and 45% month-on-month. Pak Suzuki Motor Company recorded 10,120 units, a robust 175% rise year-on-year though down 12% from June. Honda Atlas Cars sold 2,640 units (up 76% YoY but down 11% MoM), while Sazgar Engineering reported 663 units of its passenger car models.

In the two-wheeler segment, industry sales increased 39% year-on-year to about 169,713 units, according to AHL, though they edged lower month-on-month. Atlas Honda remained the dominant player. Three-wheeler sales also showed growth. Tractor sales rose modestly year-on-year to 1,242 units but fell sharply from June levels.

Truck and bus volumes expanded significantly on an annual basis, with Ghandhara Industries and others posting strong gains. Topline observed that the month-on-month decline was primarily due to lower sales at most assemblers except Indus Motor Company, which benefited from Corolla Cross and other models.

In the trucks and buses segment, industry sales increased 169% YoY for trucks and 14% YoY for buses. Ghandhara Automobiles Ltd reported truck sales of 111 units, up 247% YoY and 31% MoM, while Ghandhara Industries Ltd posted sales of 424 units, up 212% YoY. Hino sales stood at 50 units, up 14% YoY but down 21% MoM, according to AHL.

In the tractor segment, industry sales increased 4% YoY but declined 59% MoM to 1,242 units. AGTL reported sales of 414 units (+29% YoY), while MTL recorded 828 units (-5% YoY).

"We expect the positive momentum in auto sales to continue in FY27, with double-digit growth supported by the launch of new variants and the entry of new brands in the market," forecasted Sohail.