Pakistan's automobile sales rose 11% year-on-year to 15,558 units in August but fell 21% from July, according to brokerage research. Uncertainty over the government's new auto policy and hybrid vehicle taxation delayed deliveries, Topline Securities and InterMarket Securities said, as manufacturers awaited clarity before resuming shipments.
What are the latest automobile sales figures in Pakistan?
Pakistan Automotive Manufacturers Association data showed cumulative industry sales for the first two months of fiscal 2027 reached 35,376 units, up 41% from a year earlier, Topline Securities said. Passenger cars led annual growth, rising 36% year-on-year to about 14,000 units, while pickup volumes fell 54%, according to InterMarket Securities.
Why did Pakistan's auto sales fall from July to August?
InterMarket Securities attributed the sequential decline mainly to delayed hybrid deliveries, as manufacturers awaited greater clarity on the timing of the new auto policy. Topline Securities also cited policy uncertainty and regional conditions affecting supply chains.
How did Indus Motor perform in Pakistan auto sales during August?
Indus Motor Co. sold 4,029 vehicles in August, up 19% from a year earlier but down 28% from July, InterMarket said. Combined sales of the Corolla, Yaris and Cross rose 21% year-on-year to 3,079 units, while Fortuner and Hilux Revo volumes increased 12% to 950 units.
Indus Motor maintained a 26% market share during the month. InterMarket said the company's relatively strong annual performance was partly supported by its greater exposure to internal-combustion-engine vehicles, while hybrid deliveries were affected by uncertainty over the applicable sales tax rate. Topline separately reported total Indus Motor sales of 4,029 units and a 21% year-on-year increase in Corolla, Yaris and Cross volumes.
How did Honda, Suzuki and Hyundai perform in August?
Honda Atlas Cars sold 2,633 units in August, around 2.5 times the level recorded a year earlier and broadly unchanged from July, according to Topline. The increase was driven mainly by its internal-combustion-engine sedans, with City and Civic sales rising to 2,529 units. By contrast, BR-V and HR-V sales fell 79% year-on-year to 80 units as hybrid-related tax uncertainty delayed deliveries, InterMarket said. Honda's market share recovered to 17% in August, according to the brokerage.
Pakistan Suzuki Motor Co. sold 7,633 units, up 7% year-on-year but down 25% from July, Topline said. Alto sales increased 27% to 5,339 units, while Cultus sales fell 40% to 296 units. Hyundai Nishat Motors recorded sales of 742 units, down 39% year-on-year but up 5% month-on-month.
How will the hybrid tax cut affect Pakistan auto sales?
Pakistan has effectively reduced sales tax to 18% on qualifying locally manufactured hybrid electric vehicles with engine capacities of up to 2,000cc that had been subject to the 25% Table-II rate. The change took effect on September 13 and is expected to help normalize hybrid deliveries after manufacturers delayed or paused sales during the period of tax uncertainty.
Hybrids had previously benefited from concessional sales tax rates of 8.5% for vehicles up to 1,800cc and 12.75% for those between 1,801cc and 2,500cc, before those concessions expired on June 30. Sazgar Engineering Works, a major hybrid-focused manufacturer, had not yet reported August sales at the time of Topline's note. The company stopped deliveries of its hybrid variants from July 1.
"With GST for hybrids reduced from 25% to 18%, SAZEW may start clearing the pent-up demand, supporting volumes in the near-term," InterMarket said. Topline also expects the lower tax burden to unlock pent-up demand and support a normalization in hybrid deliveries. InterMarket said the narrower tax differential between internal-combustion vehicles and hybrids could benefit ICE-heavy manufacturers such as Indus Motor, while the wider gap between hybrids and electric vehicles could favor EV-focused players.
How did tractor, truck and two-wheeler sales perform?
Tractor sales rose 6% year-on-year to 1,052 units in August but fell 15% from July, as deliveries under the Punjab Tractor Scheme normalized, InterMarket said. Millat Tractors increased its market share by 10 percentage points from July to 77%.
Truck sales rose 35% year-on-year to 802 units but declined 6% month-on-month, according to InterMarket. Ghandhara Industries sold 540 trucks, up 53% year-on-year. Topline separately reported combined truck and bus sales of 875 units in August, up 31% year-on-year and down 5% from July. Two- and three-wheeler sales increased 20% year-on-year and 3% month-on-month to 178,119 units, Topline said.
What is the outlook for Pakistan auto sales in FY27?
Topline expects Pakistan's automobile market to maintain its recovery during fiscal 2027, supported by new vehicle variants and the entry of new brands. The easing of hybrid taxation could provide an additional boost by allowing manufacturers to resume deliveries that had been delayed during the period of policy uncertainty. Topline expects double-digit growth in auto sales during FY27 as new models, variants and brands enter the Pakistani market.
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