Pakistan’s auto market saw a strong rebound in January 2026, with sales of cars, pickups, vans and sport utility vehicles reaching a 43 month high, signalling improved consumer demand and better economic mood.
According to industry data, total sales rose to 23,055 units in January. This marked a 36 percent increase from the same month last year and a sharp 74 percent rise compared to December. Overall sales in the first seven months of the current fiscal year climbed 43 percent to 111,377 units, up from 77,686 units a year earlier.
Analyst Myesha Sohail of Topline Securities said the sharp monthly jump was mainly linked to new year registrations, as many buyers delay deliveries to secure January number plates for better resale value. She added that yearly growth was helped by new market players, lower interest rates, easing inflation and a gradual improvement in economic sentiment.
Company sales show strong recovery
Sazgar Engineering Works reported record monthly sales of 2,004 units in January, up 72 percent from December. Its cumulative sales for the first seven months of FY26 rose 49 percent year on year to 9,214 units.
Honda Atlas Cars also recorded strong growth. The company sold 3,620 units in January, up 64 percent from a year earlier and 86 percent from the previous month. Sales of Honda City and Civic reached 3,364 units, showing a 43 month high. Meanwhile, BRV and HRV sales rose to 256 units. Honda Atlas sold 15,659 units during the first seven months of FY26, up 68 percent year on year.
Indus Motor Company posted sales of 5,060 units in January, increasing 52 percent year on year and 119 percent month on month. Combined sales of Corolla, Yaris and Cross rose to 4,078 units. Sales of Fortuner and other IMV models fell from last year but improved from December levels. The company’s total sales for 7MFY26 stood at 25,623 units, up 61 percent year on year.
Two wheelers hit record, tractors decline
Sales of motorcycles and three wheelers reached a record 181,790 units in January, rising 31 percent from last year. Total sales for 7MFY26 crossed 1.1 million units, up 32 percent year on year. Atlas Honda alone sold 157,059 bikes in January, marking another record.
Tractor sales, however, fell 9 percent year on year to 2,505 units in January. Combined sales by Fiat and Millat during 7MFY26 declined 23 percent to 15,434 units.
Truck and bus sales showed strong improvement, reaching a record 1,101 units in January. Sales during the first seven months of FY26 jumped 92 percent to 4,633 units.
Myesha Sohail said auto sales are expected to remain strong in 2026, supported by lower borrowing costs and the arrival of new hybrid and plug in hybrid vehicles.
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