Car sales jump 19% in May amid strong yearly growth

Pakistan’s car sales reached 17,660 units in May 2026, up 19% compared to the same month last year, but down 20% from April.

During the first 11 months of the current fiscal year, cumulative car sales stood at 183,704 units, marking a 45% increase compared to the same period last year.

The year-on-year increase was driven by new market entrants, product launches, relatively lower inflation in previous months, and a surge in auto financing. However, the month-on-month decline was mainly due to fewer working days in May because of Eid-ul-Adha holidays, which led to delayed deliveries, in our view. Market speculation about a potential tax rate cut may have also contributed to slower sales.

Company-wise performance:

Sazgar Engineering (SAZEW) reported sales of 1,604 units in May 2026, up 75% year-on-year but down 28% month-on-month. Of these, 355 units of the new TANK variant were sold.

Pakistan Suzuki Motor Company (PSMC) posted a 60% year-on-year increase, but a 20% month-on-month decline to 8,856 units. The company launched the Fronx model on May 6, 2026, which recorded 552 units in May, indicating strong early demand.

Honda Atlas Cars (HCAR) recorded an 11% year-on-year increase but an 18% month-on-month decline to 2,230 units. City and Civic sales rose 4% year-on-year but fell 20% month-on-month to 1,952 units, while BR-V and HR-V sales increased 2.1 times year-on-year and declined 2% month-on-month to 278 units.

Indus Motor Company (INDU) posted a 28% year-on-year and 19% month-on-month decline to 3,496 units. Corolla, Yaris, and Cross sales collectively fell 30% year-on-year and 22% month-on-month to 2,685 units, while Fortuner and IMV sales dropped 20% year-on-year and 8% month-on-month to 811 units.

Hyundai Nishat Motors recorded a 31% year-on-year and 10% month-on-month decline to 902 units. However, Tucson and Porter models saw month-on-month increases of 11% and 45%, respectively.

Two- and three-wheeler sales increased 13% year-on-year but fell 10% month-on-month to 172,433 units in May 2026. This brought cumulative 11MFY26 sales to 1.8 million units, up 30% year-on-year.

Tractor sales grew 67% year-on-year but declined 7% month-on-month to 2,616 units in May 2026. Truck and bus sales increased 17% year-on-year but fell 13% month-on-month to 714 units.

Outlook:
The outlook remains positive, with auto sales expected to maintain momentum in FY27, supported by new variants and the entry of new brands into the market.