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Car Sales and Production Surge Signals Strong Auto Sector Rebound

Pakistan's automobile sector has recorded a striking revival, with car sales jumping nearly 45 percent and production soaring over 57 percent in seven months, marking one of the strongest recoveries in recent years.

According to data released by the Pakistan Automobile Manufacturing Association (PAMA), car sales reached 84,512 units during July-January FY2025-26, up from 58,385 units in the same period last year. Production rose even faster, climbing to 92,772 units from 58,915 units.

The surge reflects a broad-based expansion across major brands. Honda posted a 61.25 percent increase in sales, rising to 13,528 units. Toyota Corolla and Yaris models also performed strongly, with combined sales growing by 53.74 percent to 20,798 units.

Among smaller segments, Suzuki Swift nearly doubled its sales, increasing by 92.07 percent to 8,921 units. Hyundai Elantra also saw gains, reaching 1,550 units from 760 units a year earlier.

Entry-level vehicles remained a key driver of demand. Suzuki Alto sales climbed to 31,172 units from 24,633 units, while Cultus sales rose to 2,963 units. The Suzuki Every model recorded the sharpest increase, surging by 239.46 percent to 4,980 units.

Production figures mirrored these trends. Output of Honda vehicles increased by 69.46 percent, while Toyota Corolla and Yaris production expanded by 85.27 percent. Suzuki Swift output nearly doubled, and Hyundai Elantra production also posted strong gains.

Manufacturing of smaller cars showed similar momentum. Suzuki Alto production rose significantly to 39,562 units, while Cultus output increased to 2,619 units. Production of Suzuki Every edged up modestly by 1.82 percent.

The data also captured early activity in the electric vehicle segment, with 177 units of the newly launched Dewan Honri-VE sold and 175 units produced during the period under review.

The sharp rise in both sales and output suggests renewed consumer demand and improved industrial activity. Yet the concentration of growth in specific models indicates that the recovery may be driven largely by certain segments rather than a uniform expansion across the market.

Even so, the figures point to a notable rebound in Pakistan's auto industry, offering a sign of momentum in manufacturing and consumer spending after a period of subdued performance.