Car sales in Pakistan increased despite inflation pressures, with cars, sport utility vehicles (SUVs), pickups, and vans remain on list top selling vehicles.
According to industry data, sales rose by 42 per cent year-on-year (YoY), although they declined by 26 per cent month-on-month (MoM).
Cumulative sales during the first eight months of FY26 reached 128,498 units, marking a 43pc increase compared to 89,770 units recorded in the same period of FY25.
The MoM decline was largely attributed to the high base effect in January, when vehicle sales typically rise due to new-year registrations, along with fewer working days in February.
Analyst Myesha Sohail of Topline Securities said the strong YoY growth was supported by the entry of new players in the market, lower interest rates, easing inflation and improving macroeconomic sentiment.
Among automakers, Sazgar Engineering Works reported sales of 1,682 units in February, up 90pc YoY but down 16pc MoM. Its cumulative sales in 8MFY26 surged 54pc YoY to 10,896 units.
Indus Motor Company, the assembler of Toyota vehicles in Pakistan, recorded a 46pc YoY increase, although sales fell 25pc MoM to 3,817 units in February. Overall sales in 8MFY26 rose 59pc YoY to 29,440 units.
Meanwhile, Honda Atlas Cars Pakistan saw a modest 3pc YoY rise but a sharp 42pc MoM drop, with 2,114 units sold in February. However, its cumulative sales increased 57pc YoY to 17,773 units during 8MFY26.
Hyundai Nishat Motors was the only company to post a YoY decline while maintaining a stable MoM trend, selling 1,021 units in February, down 3pc YoY. Despite this, its sales in 8MFY26 climbed 38pc YoY to 8,754 units.
Pak Suzuki Motor Company recorded a 53pc YoY increase but a 25pc MoM decline, selling 8,160 units in February. Its cumulative sales during the first eight months of FY26 rose 31pc YoY to 59,456 units.
Auto sector expert Mashood Ali Khan said the industry is on track to reach around 200,000 units in sales of cars, SUVs, pickups and vans by the end of the year.
In the two- and three-wheeler segment, sales rose 24pc YoY but declined 12pc MoM to 159,512 units in February, taking total sales in 8MFY26 to around 1.3 million units, a 31pc increase YoY.
Atlas Honda Limited, the manufacturer of the popular Honda CD70 motorcycle, recorded sales of 136,000 units in February, up 26pc YoY but down 13pc MoM.
Tractor sales increased 12pc YoY but dropped 31pc MoM to 1,717 units in February. However, overall sales during 8MFY26 fell 21pc YoY to 17,151 units.
Truck and bus sales surged 37pc YoY but declined 40pc MoM to 664 units in February. Despite the monthly drop, cumulative sales in 8MFY26 rose 82pc YoY to 5,296 units.
Mashood Ali Khan noted that motorcycle sales are witnessing strong growth, while trucks and buses are gradually improving. However, tractor sales remain under pressure due to policy-related issues. He added that auto parts manufacturers are struggling with rising costs, making price adjustments across the industry necessary.
Analyst Myesha Sohail expects the positive momentum in Pakistan’s auto sector to continue in 2026, supported by lower interest rates and the introduction of new hybrid and plug-in hybrid vehicle models.
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