Quarterly auto sales rise despite sluggish September

Karachi experienced a decline in sales of cars, SUVs, pickups, and vans in September, with a 12% year-on-year and 3% month-on-month decrease, reaching only 15,104 units. Despite this dip, cumulative sales surged 19% in Q1 of fiscal year 2027, amounting to 50,480 units. Sania Irfan of Topline Securities suggested that delayed clarity on the HEV/PHEV sales tax policy was responsible for the decline, as it hampered companies' invoicing capabilities.

Indus Motor Company (IMC) was the sole company to record sales growth in September, with a 31% year-on-year and 3% month-on-month increase to 4,142 units. The growth was primarily driven by Corolla, Yaris, and Cross sales, which saw a 34% year-on-year surge to 3,563 units. Fortuner and IMV sales also rose 16% year-on-year to 579 units.

In Q1 FY 2027, IMC's sales surged by 34% year-on-year to 13,260 units. Honda Atlas Cars Limited (HACL) reported an 8% year-on-year and 19% month-on-month decline in September, with City and Civic sales at 2,021 units, up 2% year-on-year but down 21% month-on-month. Meanwhile, BR-V and HR-V sales saw a 68% year-on-year decline and a 34% month-on-month rise to 107 units.

HACL sold 7,401 units in Q1 FY 2026, up by 52% year-on-year. Sania noted that Pakistan Suzuki Motor Company Ltd (PSMCL) reported 4,862 units in September, down 46% year-on-year and 36% month-on-month. Alto sales decreased by 29% year-on-year to 3,354 units, while Cultus sales dropped 68% year-on-year to 138 units, resulting in PSMCL sales rising 14% year-on-year to 22,615 units in Q1 FY 2027.

Hyundai Nishat Motors (HNM) recorded a 25% year-on-year decline and a 19% month-on-month increase to 884 units in September. HNM's 1QFY27 sales plummeted by 35% year-on-year to 2,336 units, according to Sania. The Pakistan Automotive Manufacturers Association (PAMA) reported that Sazgar's Haval and Tank models had no production or sales in August.

Based on July and September data, Q1 FY 2027 sales stood at 3,137 units, a 12% decrease. Two- and three-wheeler sales reached an all-time high of 202,502 units in September, up 27% year-on-year and 14% month-on-month, while Q1 FY 2027 sales grew to 553,994 units, up from 431,542 units in the same period last fiscal year. Atlas Honda set the highest monthly sales record in September, breaking its previous record of 163,048 units achieved in April 2026.

Tractor sales increased by 130% year-on-year and 73% month-on-month in September, with July-September FY 2027 sales surging 38% to 4,109 units year-on-year. Truck and bus sales grew by 13% year-on-year and 7% month-on-month to 933 units in September, while a 46% year-on-year increase in sales was recorded in Q1 FY 2027, reaching 2,727 units.

PAMA Director-General Razi ur Rahman stated that the Q1 FY 2027 results indicated a resurgence in customer interest across all vehicle categories, including the LCV, Jeep, and pickup segments. This improvement was attributed to easing inflationary pressures and a healthier macroeconomic environment. However, Rahman cautioned that the influx of completely built-up (CBU) units due to uncertainty over the Auto Policy could strain Pakistan's balance of payments, potentially prompting the State Bank to take corrective measures.