Karachi: Auto sales in Pakistan surged to their highest level in 52 months in October 2026, driven largely by an increase in passenger car sales, particularly lower-displacement models. This rise comes despite a decline in other automotive segments and ongoing policy uncertainty.

According to AKD Securities Limited, the significant uptick in demand for smaller cars has helped offset challenges faced by the industry, including declines in other sectors. The firm anticipates continued growth in the auto industry, supported by lower financing rates, stable pricing due to increased competition, and improving macroeconomic conditions.

The press release highlights that Indus Motor Company (INDU) stands out as a recommended investment choice, with a December 2026 target price of PKR 3,966 per share and a dividend yield of 11.2%. The positive outlook for the auto sector suggests that these factors will continue to support industry growth in the coming months.