Auto sales jump 40% in March 2026
Pakistan auto sector rebounds as car and truck sales surge on economic recovery and new model launches
Pakistan’s automobile sector recorded strong growth in March 2026, with car sales rising 40% year-on-year to 15,531 units, driven by higher demand for 1300cc and above vehicles and improved economic activity.
Read More: Auto Sales In Feb 2026 Jump 41% on Strong Demand
Truck and bus sales also posted robust growth, increasing 23% YoY to 566 units during the month, reflecting rising transport activity and infrastructure demand. The data, compiled from Pakistan Automotive Manufacturers Association (PAMA) and presented in the report, indicates a broad-based recovery across segments.
Within passenger vehicles, cars accounted for 11,755 units, up 45% YoY, while jeeps and pickups reached 3,776 units, showing a 27% increase compared to March last year. On a monthly basis, however, total car sales declined 9%, suggesting some normalization after earlier gains.
Among assemblers, Pak Suzuki Motor Company remained the market leader with 6,250 units sold, up 38% YoY despite a 23% month-on-month decline. Indus Motor Company posted 3,873 units, reflecting a 24% annual increase, while Honda Atlas Cars recorded strong growth of 63% YoY with 2,324 units sold.
Sazgar Engineering emerged as the fastest-growing major player, with sales rising 84% YoY to 1,734 units, supported by demand for its HAVAL plug-in hybrid models. The report estimates that the newly launched variant contributed 15–25% to Sazgar’s sales mix, highlighting increasing consumer interest in hybrid vehicles.
Other players also showed mixed performance. Hyundai Nishat recorded 928 units, slightly down 3% YoY, while Ghandhara Automobiles’ pickup segment posted notable gains, with the JAC X200 reaching 288 units, supported by improving commercial activity.
On a quarterly basis, the industry maintained momentum, with car sales rising 21% quarter-on-quarter to 55,706 units in 3QFY26. Sazgar and Ghandhara Industries led growth, posting increases of 48% and 52% QoQ respectively, indicating a recovery in demand following earlier competitive pressures.
Cumulatively, car sales including pickups reached 144,028 units in the first nine months of FY26, up 43% YoY. The growth was supported by lower policy rates, improved macroeconomic conditions, and new vehicle launches across categories.
In the heavy vehicle segment, Ghandhara Industries led the truck market with 295 units in March, up 15% YoY, excluding pickup volumes. Master Motors also posted solid growth of 23% YoY, while Hinopak Motors saw a decline of 22%, reflecting competitive pressures in the high-end truck segment.
The cumulative truck and bus segment showed even stronger recovery, with 9MFY26 sales surging 74% YoY to 5,863 units. Growth was largely driven by Ghandhara Automobiles, which posted 486 units compared to 124 units in the same period last year, alongside strong gains from Master Motors and Ghandhara Industries.
Other segments also indicated improving economic activity. Tractor sales jumped 96% YoY to 3,008 units in March, while motorcycle sales rose 31% YoY to 163,156 units, reflecting rising rural demand and consumer mobility needs. Three-wheeler sales increased 9% YoY, pointing to gradual recovery in lower-income transport segments.
Segment-wise analysis showed that higher engine capacity vehicles remained the key growth driver. Sales of 1300cc and above cars increased 44% YoY to 6,447 units, while sub-1000cc vehicles also grew 44%, indicating broad-based demand recovery across income groups.
Industry analysts attribute the recovery to easing monetary conditions, improved consumer sentiment, and stabilization in input costs. Lower interest rates have supported auto financing, while new model introductions, particularly in hybrid and SUV categories, have attracted buyers.
However, risks remain for the sector, including potential currency depreciation, rising imported input costs, and policy uncertainties, which could impact pricing and demand dynamics going forward, as highlighted in the report.
The strong March performance signals continued recovery in Pakistan’s automobile sector, with sustained growth likely if macroeconomic stability persists and financing conditions remain supportive.