Pakistan car sales dip 11% in Nov after four months of growth

The momentum of auto sales in Pakistan hit a speed bump in November as the sales registered a first monthly decline after four months of robust sales.

According to the latest data released by the Pakistan Automotive Manufacturers Association (PAMA), 15,442 units were sold in November, down from 17,333 units sold in October.

On a year-on-year basis, sales have surged by 52% compared to the 10,163 units sold in November.

In the past few months, the sales of cars in Pakistan have rebounded due to lower interest rates and moderate inflation.

This positive trajectory is reflected in the cumulative data for the first five months of the fiscal year 2026 (5MFY26), where sales climbed 48% to 75,042 units, up significantly from 50,856 units in the same period last year.

According to the data, Pak Suzuki Motor Company (PSMC) remained the market leader in terms of sales by volume. The company experienced an 11% month-on-month decline, selling 6,615 units compared to 7,403 in October. Specifically, the popular Alto variant saw sales drop by 17% MoM to 4,069 units. However, the company’s sales still went up 23% compared to November 2024.

The sales of Indus Motor Company (INDU) fell by 15% MoM to 3,833 units. Despite the monthly drop, the company recorded a massive 75% increase compared to the previous year.

Honda Atlas Cars bucked the downward trend seen by its competitors, maintaining flat sales MoM at 2,609 units. Notably, the company posted the highest annual growth among the "Big 3," with sales jumping 135% YoY, driven by the high demand for City and Civic models.

Hyundai recorded sales of 1,001 units (down 8% MoM), while Sazgar Engineering’s Haval saw a steeper decline of 20% MoM, selling 1,109 units.

Two-wheelers hit multi-year High

In contrast to the passenger car segment's monthly dip, the two and three-wheeler segment displayed resilience. Total sales for the segment reached 165,753 units, remaining flat on a monthly basis but rising 38% year-on-year.

This is reportedly the highest number in nearly four years.

Atlas Honda continued its dominance, selling 140,382 units in November, a figure that remained stable MoM but represented a 40% surge over November 2024.

PSMC, which also manufactures motorbikes, showed an impressive growth, jumping 65% YoY with 3,150 units sold.

According to the data, tractor sales improved significantly, rising 27% month-on-month and 7% year-on-year to reach 3,663 units, led by Millat Tractors. Conversely, the truck and bus segment struggled, plummeting 31% month-on-month to just 530 units, although this still represented a 62% improvement over the low base of the previous year.

According to analysts, the continued year-on-year recovery in auto sales aligns with broader efforts to stabilize the national economy. The International Monetary Fund (IMF) Executive Board recently approved the disbursement of a $1.3 billion loan tranche for Pakistan, boosting State Bank reserves to approximately $15.8 billion—the highest since March 2022.

These inflows, part of a larger $7 billion Extended Fund Facility, aim to support economic targets that may further stabilize the industrial landscape moving forward.