Karachi: Car sales in Pakistan declined by 12% year-on-year and 3% month-on-month to a total of 15,104 units in September 2026, marking a notable drop in the country's automobile market. This decline is attributed to ongoing uncertainties surrounding the hybrid electric vehicle (HEV) and plug-in hybrid electric vehicle (PHEV) sales tax policy, which has impacted invoicing by companies.
According to JS Global, the first quarter of the fiscal year 2027 saw cumulative car sales rise to 50,480 units, representing a 19% year-on-year increase. However, the monthly decline in September highlights underlying challenges in the market. Indus Motor Company (INDU) emerged as the sole automaker to experience sales growth during the month, with a 31% increase year-on-year and a 3% rise month-on-month, totaling 4,142 units. The growth was largely driven by the sales of Corolla, Yaris, and Cross models, which collectively rose by 34% year-on-year.
Conversely, Honda Atlas Cars (HCAR) reported a decline of 8% year-on-year and 19% month-on-month, with sales reaching 2,128 units. City and Civic models increased slightly by 2% year-on-year but decreased by 21% month-on-month. Meanwhile, Pakistan Suzuki Motor Company (PSMC) recorded a significant decrease in sales, with a 46% year-on-year and 36% month-on-month drop, totaling 4,862 units. Hyundai Nishat Motors also saw a decline of 25% year-on-year, although there was a 19% month-on-month increase.
Despite the challenges faced by the car market, sales of two and three-wheelers reached an all-time high of 202,502 units, marking a 27% year-on-year and 14% month-on-month increase. Tractor sales also showed significant growth at 1,815 units, rising 2.3 times year-on-year and 73% month-on-month. Additionally, truck and bus sales grew by 13% year-on-year and 7% month-on-month to 933 units.
The outlook for the automobile industry in fiscal year 2027 remains positive, with expectations of double-digit growth driven by the launch of new variants and the entry of new brands, as reported by JS Global.