Karachi: Auto sales in Pakistan are anticipated to see a significant increase in July 2026 compared to the previous year, with a projected rise of 108% in volumes, reaching 17,700 units, according to a recent analysis. However, month-on-month figures are expected to show a slight decline of 2%.

According to JS Global, the surge is largely attributed to Pak Suzuki Ltd, which is expected to witness a 172% year-on-year increase, driven by a low base from the previous year. Honda Atlas Cars Ltd (HCAR) and Indus Motor Company Ltd (INDU) are forecasted to experience growth of 76% and 53% respectively. Notably, INDU's volumes are predicted to hit approximately 5,100 units, marking a four-year monthly high.

The month-on-month trend, which typically sees a post-budget decline, is expected to show resilience this year, contrasting with last year's 54% drop. This is mainly due to the anticipated 45% increase in INDU's monthly volumes.

Meanwhile, discussions continue between the government and key stakeholders regarding the Auto Policy (AIDEP 2026-31). The government is yet to find a balance between reducing Completely Built Unit (CBU) tariffs under the National Tariff Policy (NTP) and safeguarding the local industry. Additionally, the sales tax on Hybrid Electric Vehicles (HEV) and Plug-in Hybrid Electric Vehicles (PHEV), which was raised to 25% under the Finance Bill 2027, is now expected to be reduced to 18%.