Karachi: The auto industry is expected to witness significant year-on-year growth in February 2026, with four major players — Indus Motor Company Ltd (INDU), Honda Atlas Cars Ltd (HCAR), Sazgar Engineering Works Ltd (SAZEW), and Pak Suzuki — projected to collectively achieve a 46% increase in sales volume, reaching approximately 15,900 units. This growth is largely driven by impressive performances from SAZEW, Pak Suzuki, and INDU, with anticipated sales increases of 90%, 55%, and 46% respectively.

According to JS Global, however, there is an anticipated month-on-month decline of 27% in sales volumes, attributed to a surge in consumer purchases in January, as buyers often delay year-end purchases to acquire new model year vehicles. Over the first eight months of the fiscal year 2026 (8MFY26), the sector is likely to experience a 43% year-on-year growth, reflecting a broad-based recovery across all major manufacturers.

Despite these positive trends, the industry faces potential challenges ahead. The ongoing conflict in the Middle East could impact the sector significantly through increased freight costs and disruptions in the supply chain for completely knocked down (CKD) kits. A prolonged conflict might also strain the country's current account and affect the exchange rate, which could result in price hikes and import restrictions on CKD parts.