Pakistan's car market has roared into the new fiscal year, though not without a wobble. Sales of cars, light commercial vehicles, vans, jeeps and electric vehicles jumped by around 80% year-on-year to 19,818 units in July 2026, according to the Pakistan Automotive Manufacturers Association (PAMA). Yet volumes fell by 13% from 22,741 units in June, as the fading of pre-budget buying and uncertainty over a new auto policy dampened booking.
The annual comparison is flattering. In July 2025 the industry sold just 11,034 units, so last month's tally represents a near doubling. Passenger cars drove the gains, expanding by 141% year-on-year, according to Leena Abid, an auto analyst at Arif Habib Limited (AHL).
Analysts point to several forces behind the rebound. Myesha Sohail of Topline Securities attributed the year-on-year rise to new market entrants, fresh product launches and a surge in car financing. The monthly dip, she said, stemmed mainly from doubts surrounding the forthcoming auto policy. Ms Abid offered a similar reading. June's figures, she noted, had been lifted by customers rushing to buy before the budget, and July's volumes merely normalised from that spike. Uncertainty over the new policy, she added, further weighed on bookings during the month.
Among individual carmakers, Pak Suzuki Motor Company posted the most dramatic annual gain. It sold 10,120 units, up 175% year-on-year, though 12% fewer than in June. Honda Atlas Cars sold 2,640 units, a rise of 76% on the year but an 11% fall from the previous month.
Indus Motor Company bucked the monthly trend. Its sales reached 5,089 units, up 53% year-on-year and 45% month-on-month. Topline credited the Corolla Cross and other models, noting that most other assemblers recorded lower sales than in June. Sazgar Engineering reported 663 units of its passenger cars.
Two-wheelers also enjoyed brisk demand. Industry sales rose by 39% year-on-year to around 169,713 units, according to AHL, though they edged down from June. Atlas Honda remained the dominant player, while three-wheeler sales also grew.
Commercial vehicles registered some of the steepest annual increases. Truck sales rose by 169% year-on-year and bus sales by 14%. Ghandhara Industries posted 424 units, up 212%, while Ghandhara Automobiles sold 111 trucks, up 247% on the year and 31% on the month. Hino sold 50 units, up 14% year-on-year but down 21% from June. Tractors told a more subdued story. Industry sales edged up 4% year-on-year to 1,242 units but plunged 59% from June. AGTL sold 414 tractors, a rise of 29%, while MTL recorded 828 units, down 5% on the year.
The outlook, according to analysts, remains upbeat. Ms Sohail expects the positive momentum to persist through the 2026-27 fiscal year, with double-digit growth supported by new variants and the arrival of fresh brands. Much, however, may hinge on how quickly the government settles the new auto policy that has unsettled buyers.