Karachi: Pakistan's auto sales have experienced a 5% year-on-year decline in September 2026, primarily due to a decrease in passenger car and light commercial vehicle sales. This downturn is attributed to ambiguity surrounding forthcoming auto policies and disruptions in transportation due to strike actions.

According to AKD Securities Limited, the decline in sales volumes is influenced by the uncertainty of the upcoming auto policy, which has left manufacturers and consumers in a state of hesitation. Additionally, recent transportation disruptions from strike calls have further exacerbated the situation, limiting the movement of goods and affecting overall sales.

Despite the current decline, AKD Securities Limited maintains an optimistic outlook for the auto industry, predicting growth supported by reduced financing rates, stable prices amid increasing competition, and improving macroeconomic conditions. The firm highlights Indus Motor Company (INDU) as a favorable option, with a December 2026 target price of PKR 3,966 per share and an expected dividend yield of 11.5% for the fiscal year 2026.

As the industry awaits clarity on government policies, stakeholders remain cautious, hoping for measures that could stabilize the market and stimulate growth in the coming months.