ISLAMABAD: Passenger car sales in Pakistan rose sharply by 45% year-on-year in March 2026, supported by easing inflation, lower interest rates, and improving economic sentiment, according to industry data cited from the Pakistan Automotive Manufacturers Association (PAMA).
Total passenger car volumes reached 11,755 units in March 2026, compared to 8,130 units in the same month last year. However, on a month-on-month basis, sales declined 12% from 13,388 units in February 2026.For the July–March period of FY26, cumulative passenger car sales increased 45% to 109,655 units, up from 75,397 units in the corresponding period last year.
Analysts attributed the recovery to improved macroeconomic conditions, the entry of new market players, and easier financing conditions. They noted that the SUV segment has become increasingly competitive due to rising participation from Chinese, Korean, and Japanese automakers, offering consumers more financing and leasing options.
Segment-wise, vehicles above 1,300cc saw a 44% rise to 6,447 units in March. The below-1,000cc category increased 44% to 4,961 units, while the 1,000cc segment grew 52% to 294 units. Electric vehicle sales also appeared on the market, with 53 units of the Dewan Honri-Ve sold compared to none a year earlier. Among major models, Honda City and Civic sales jumped 72% to 2,049 units.
Toyota’s Corolla, Yaris, and Corolla Cross combined rose 32% to 3,145 units. Suzuki Swift sales increased 66%, while Alto remained the highest-volume model in the low-cost segment, up 48%.In the SUV and crossover category, Sazgar’s Haval led growth with an 84% increase. Meanwhile, some models such as Hyundai Sonata and Hyundai Tucson recorded declines.
Commercial vehicle categories also showed growth, with trucks and buses rising 23% and tractors nearly doubling compared to last year’s March figures, though cumulative tractor sales for the year-to-date period were lower.
Motorcycles and three-wheelers posted strong growth of 31%, driven largely by Atlas Honda, which saw a 34% increase in sales.
Overall, industry experts described 2026 as a potential recovery year for Pakistan’s auto sector, although they emphasized that future growth will depend on upcoming government industrial and SME policy decisions.
