Karachi: Pakistan's auto industry is experiencing a significant upturn, with major players reporting robust sales in October. This comes as the government prepares to finalize an ambitious auto policy aimed at revitalizing the sector and promoting electric vehicles.

According to JS Global, the three leading auto manufacturers—Indus Motor Company Ltd (INDU), Honda Atlas Cars Ltd (HCAR), and Pak Suzuki Ltd—are projected to report a 53% year-on-year increase in sales, reaching 22,100 units for October 2026. The increase is largely attributed to a substantial rise in Pak Suzuki sales. However, HCAR and INDU are expected to see year-on-year declines in sales volumes by 19% and 10%, respectively.

Month-on-month comparisons reveal a significant doubling of total sales volumes, largely driven by a 2.3-fold increase in Pak Suzuki's numbers, while INDU and HCAR are likely to maintain stable month-on-month sales. Cumulatively, the first four months of FY27 are expected to show a 33% year-on-year increase in auto sales, totaling 65,400 units.

In a related development, the government has approved the final draft of the Automotive Industry Development and Export Policy (AIDEP) 2026-31, which is now set to be presented to the Federal Cabinet. The policy, reportedly cleared by the International Monetary Fund, aligns with the draft approved by the Prime Minister in October 2026. It emphasizes the promotion of electric vehicles through duty concessions and infrastructure development, as well as imposing a development charge on internal combustion engine vehicles. The policy also aims to gradually reduce tariffs on completely built-up and completely knocked-down vehicles to lower prices, with a target of achieving $6 billion in exports over the policy period.