The automotive sector in Pakistan is expanding as a result of a statewide spike in sales.

According to figures from the Pakistan Automotive Manufacturers Association (PAMA), October sales of cars, vans, pickups, and SUVs increased to 17,333 units, a 32% year-over-year gain and a 1% month-over-month uptick, indicating that Pakistan’s automotive industry is firmly into recovery mode.

Compared to 40,693 units during the same period last year, cumulative sales for the first four months of FY26 increased by 46% to 59,600 units. a spike propelled by improved consumer confidence and economic stability.

According to Waqas Ghani, head of research at JS Global and Pakistan TV Digital, “the market is showing strong signs of recovery after a period of uncertainty.” He credited strengthening macroeconomic conditions for the positive trend.

“Buyers are returning to the market as a result of a stable rupee, declining inflation, and reduced borrowing costs.”

Ghani clarified that improvements in both supply and demand are responsible for the reversal.

“If we go back to 2022, supply chains were disrupted, plants were closing, and import restrictions were in place. That isn’t the case now. “The production lines are now operational,” he declared.

He continued, “On the demand side, disposable incomes are improving, and auto loans have become more affordable with inflation declining and interest rates down 11%. Together, these elements have contributed to the sales boom.

The recuperation is not uniform, though. According to PAMA data, a company-wide reset and the discontinuation of models such the Ravi, Bolan, Every VX, and Waggon R were the main causes of Pakistan Suzuki Motor Company’s (PSMC) 18% MoM reduction in October.

Sales of Swift, Ravi, and Every plummeted 17%, 84%, and 28%, respectively, while Bolan has not reported any sales since May 2025. Nevertheless, PSMC’s July–October total increased 33% YoY to 27,234 units, and its YoY sales increased by 1%, highlighting the company’s tenacity in the face of reorganisation.

The largest gains, however, were made by Indus Motor Company (IMC), which reported a 44% MoM jump to 4,529 units. Fortuner and IMVs increased 58% MoM and 83% YoY to 787 units, while the Corolla, Yaris, and Cross models increased 41% MoM and 78% YoY to 3,742 units.

Strong demand for sedans and SUVs drove IMC’s four-month sales, which increased 66% YoY to 14,418 units.

Despite an 8% decline in MoM sales, Hyundai Nishat saw the most YoY growth of any automaker, increasing 82% to 1,086 units, driven by Tucson and Elantra. Its four-month total of 4,698 units was an 81% YoY increase.

With a 72% YoY and 13% MoM rise in October, Honda Atlas Cars Limited (HACL) again reported impressive results, fuelled by consistent demand for City and Civic models. At 7,487 units, four-month sales increased 54% year over year.

Growth went beyond personal vehicles. In October, sales of two- and three-wheelers climbed 20% year over year and 4% month over month to 165,500 units, approaching a four-year high. With 140,178 CD70 units sold, Atlas Honda Limited broke its previous record established in September 2025.

With increased demand for sedans, SUVs, motorcycles, tractors, and commercial vehicles, Pakistan’s auto industry seems set for a strong year, indicating a resurgence of confidence among producers, dealers, and buyers.