Pakistan recorded the sale of 11,755 passenger cars in March 2026, with a 45% increase year-on-year, according to data released by the Pakistan Automotive Manufacturers Association.
Despite the annual growth, sales declined 12% compared to February 2026, when 13,388 units were sold.
Analysts say the sharp rise in car sales was driven by improved economic conditions, including lower interest rates, easing inflation, and growing consumer confidence. The entry of new players into the market has also contributed to increased demand.
For the first nine months of FY2026 (July 2025 to March 2026), total car sales reached 109,655 units, up significantly from 75,397 units during the same period last year.
Auto expert Mashood Ali Khan said that Pakistan’s automotive sector is witnessing a steady recovery, with the market regaining stability after a difficult period. He stated that small cars continue to dominate, while the SUV segment is expanding rapidly due to competition among Chinese, Korean, and Japanese brands offering better pricing and financing options.
Segment-wise performance also showed notable growth:
- Cars with engines 1300cc and above recorded 6,447 units (up 44%)
- 1000cc cars reached 294 units (up 52%)
- Below 1000cc cars surged to 4,961 units (up 44%)
Among popular models, sales of Honda Civic and City rose sharply, while Toyota Corolla, Yaris and Corolla Cross also posted strong growth. Suzuki Swift and Suzuki Alto remained key contributors, especially in the small car segment.
The electric vehicle segment also saw activity, with the Dewan Honri-V recording 53 units sold during the month, compared to no sales a year earlier.
Beyond passenger cars, jeeps and pickup sales increased 27% to 3,776 units, while trucks and buses rose 23% to 566 units. Farm tractors nearly doubled to 3,008 units, and motorcycles and three-wheelers jumped 31% to 166,633 units.
Industry experts believe 2026 could mark a comeback year for Pakistan’s auto sector. However, future growth will depend on upcoming government policies related to industry, SMEs, and localisation, which are expected to shape the long-term direction of the market.
