ISLAMABAD: Passenger car sales in Pakistan increased by 45 percent year-on-year in March 2026, signaling a strong recovery in the automotive industry, according to data released by the Pakistan Automotive Manufacturers Association (PAMA). Analysts attributed the surge to improving economic conditions and renewed consumer confidence across the market.
Sales climbed to 11,755 units in March 2026 compared with 8,130 units recorded in the same month last year. However, on a month-on-month basis, sales declined by 12 percent from 13,388 units reported in February 2026. Meanwhile, cumulative passenger car sales for the first nine months of FY26 (July 2025 to March 2026) rose by 45 percent to 109,655 units, up from 75,397 units during the corresponding period last year.
Improving economic indicators support market demand
Topline Research analyst Myesha Sohail said new market entrants, lower interest rates, easing inflation, and improving macroeconomic sentiment drove the sharp annual growth. Moreover, auto expert Mashood Ali Khan described the current business environment as stable and positive after a prolonged slowdown.
Sales of 1,300cc and above vehicles rose by 44 percent to 6,447 units in March 2026, while the 1,000cc segment recorded a 52 percent increase to 294 units. Similarly, vehicles below 1,000cc posted a 44 percent rise to 4,961 units. Popular models such as the Honda Civic and Honda City continued to perform strongly, reflecting sustained consumer demand.
SUVs, tractors and motorcycles record broad-based growth
The broader auto sector also recorded gains across multiple categories. Sales of jeeps and pickup vehicles increased by 27 percent to 3,776 units, led by strong demand for models produced by Sazgar Engineering. In addition, truck and bus sales rose by 23 percent, while farm tractor sales nearly doubled with a 96 percent increase.
Motorcycle and three-wheeler sales also strengthened, rising by 31 percent year-on-year. Industry experts expect the positive momentum to continue throughout 2026 as supportive government policies and new hybrid vehicle launches further stimulate demand.
Meta description: Pakistan car sales rise 45 percent in March 2026 as improving economy and lower interest rates boost demand.
