Karachi / Brussels, (Unib Rashid) __ Passenger car sales in Pakistan recorded a strong 51 percent year-on-year increase in February 2026, although sales declined on a month-on-month basis due to seasonal factors, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).

The data showed that 13,388 passenger cars were sold in February 2026, compared with 8,882 units in February 2025, reflecting robust annual growth. However, sales fell 28 percent from January 2026, when 18,602 units were sold.

During the first eight months of fiscal year 2026 (July 2025–February 2026), cumulative passenger car sales rose 46 percent to 97,900 units, compared with 67,267 units during the same period last year.

Auto sector expert Mashood Khan said the industry remains on track to reach 200,000 car sales this year, despite ongoing challenges. He noted that motorcycle sales are growing rapidly while trucks and buses are gradually recovering.

However, he said tractor sales remain under pressure due to policy-related issues, urging the government to address the matter under the Special Investment Facilitation Council (SIFC) framework to support the agriculture sector. Shipping delays and rising fuel prices, he added, are also affecting the industry.

Auto parts manufacturers are also facing rising production costs, which may require price adjustments across the sector, Khan said.

Segment Performance

In the 1,300cc and above category, sales reached 6,833 units in February, up 45 percent from 4,700 units a year earlier. The 1,000cc segment recorded 460 units, down 6 percent from 489 units in February 2025. Meanwhile, below-1,000cc vehicles posted strong growth, with sales rising 65 percent to 6,062 units from 3,680 units a year earlier.

Electric vehicle sales also showed improvement. The Dewan Honri‑Ve recorded 33 units sold in February, compared with 13 units last year, marking a 154 percent year-on-year increase.

Brand-wise Trends

Among larger vehicles, Toyota models including Corolla, Yaris and Corolla Cross posted 70 percent growth, reaching 3,102 units. The Suzuki Swift recorded the sharpest increase in the segment, rising 151 percent to 1,634 units.

Sales of Honda Civic and Honda City remained largely stable at 1,861 units, while Hyundai Elantra sales declined 6 percent to 193 units. The Hyundai Sonata saw a sharper drop, falling 71 percent to 43 units.

In the smaller vehicle category, Suzuki Cultus sales increased 63 percent, while the Suzuki Alto remained the best-selling car with 5,522 units, up 55 percent year-on-year. The Suzuki Every recorded a major jump, reaching 540 units compared with 110 units last year.

SUVs, Trucks and Two-Wheelers

Sales of SUVs, jeeps and pickup trucks increased 17 percent to 3,733 units in February. The Haval lineup assembled by Sazgar Engineering Works recorded the strongest growth, with sales rising 86 percent to 1,627 units.

Sales of trucks and buses climbed 37 percent to 664 units, indicating gradual recovery in the commercial vehicle segment.

In contrast, tractor sales totaled 1,717 units, up 12 percent year-on-year, but cumulative sales for FY26 so far declined 21 percent to 17,151 units, compared with 21,692 units last year.

Meanwhile, motorcycle and three-wheeler sales rose 24 percent to 159,512 units, driven largely by strong demand for Atlas Honda motorcycles, which sold 136,001 units, up 26 percent from the same month last year.

Outlook

According to Myesha Sohail of Topline Research, the sharp month-to-month decline was mainly due to a high base effect in January, when new-year vehicle registrations typically push sales higher, along with fewer working days in February.

However, she said the strong annual growth reflects improving economic conditions, including lower interest rates, easing inflation and the entry of new models into the market.

“We expect the positive momentum in auto sales to continue through 2026, supported by lower borrowing costs and the launch of new hybrid and plug-in hybrid vehicles,” Sohail said.