Passenger-car sales reported by the Pakistan Automotive Manufacturers Association (PAMA) rose 42.8% in the first quarter of fiscal year 2026-27, even as sales in September declined from both the previous month and a year earlier. The association recorded 41,872 passenger cars sold during July–September 2026, compared with 29,318 in the corresponding quarter last year.
September accounted for 10,939 sales, down 9.8% from 12,126 in September 2025 and 20.3% from 13,717 in August 2026, according to PAMA's September production and sales report. The figures explain why a strong quarterly headline can coexist with a weaker final month: much of the year's increase had already been recorded in July and August.
How July and August lifted first-quarter car sales
July was the largest contributor to the quarterly increase. PAMA members reported 17,216 passenger-car sales in July 2026, against 7,135 in July 2025. August sales also exceeded their year-earlier level, at 13,717 versus 10,057, although they were lower than July's volume.
| Period | 2025 sales | 2026 sales | Year-on-year change |
|---|---|---|---|
| July | 7,135 | 17,216 | +141.3% |
| August | 10,057 | 13,717 | +36.4% |
| September | 12,126 | 10,939 | −9.8% |
| July–September total | 29,318 | 41,872 | +42.8% |
Source: PAMA. Year-on-year percentages are calculated from the association's reported sales totals and rounded to one decimal place.
The three-month total was 12,554 units higher than a year earlier. But sales declined in each successive month of the July–September 2026 quarter. The quarterly increase therefore shows stronger sales than the same period last year, not uninterrupted month-to-month growth.
Which car models performed differently in September?
The September figures varied considerably across models and manufacturer groupings. The PAMA model breakdown recorded:
- Toyota Corolla, Yaris and Corolla Cross combined: 3,563 sales, compared with 2,655 in September 2025.
- Suzuki Alto: 3,354, down from 4,718 a year earlier.
- Honda City and Civic combined: 2,021, against 1,977.
- Suzuki Swift: 852, down from 1,403.
- Suzuki Cultus: 138, down from 427.
- Hyundai Elantra: 494, up from 131.
Toyota's 3,563 figure covers three nameplates together; it cannot establish that any single Toyota model outsold the Alto. Likewise, changes in individual model totals do not, by themselves, establish whether prices, supply constraints or customer preferences caused those movements.
Why 43% is not the growth rate for the entire auto market
The 42.8% rise comes from PAMA's passenger-car classification. Its separate jeeps and pickups category moved in the opposite direction: first-quarter sales fell 33.5% to 8,608 from 12,949 a year earlier.
Adding those two PAMA categories gives 50,480 sales in July–September 2026, compared with 42,267 a year earlier, an increase of approximately 19.4%. For September alone, the combined total was 15,104, down from 17,174 in September 2025, or about 12.1%. These broader figures are not inconsistent with the passenger-car figures; they measure different sets of vehicles.
PAMA also reported first-quarter passenger-car production of 47,614 units, compared with 36,114 a year earlier, a rise of 31.8%. Production and reported sales are different measures. Their difference should not be treated as proof of a particular amount of unsold showroom stock or customer deliveries.
PAMA points to easing inflation, but flags policy uncertainty
According to Business Recorder's October 13 report of PAMA's statement, Director General Razi-ur-Rahman linked the quarterly rise in member-company sales to easing inflationary pressure and an improving macroeconomic environment. He also warned that uncertainty over the next auto policy was leaving manufacturers and buyers hesitant about investment decisions. These are PAMA's assessments, not independent proof that any single economic factor caused the rise.
Dawn reported on October 14 that Topline Securities analyst Sania Irfan associated the weaker market with uncertainty about sales-tax treatment for hybrid and plug-in hybrid vehicles, which she said had restricted invoicing. That explanation concerns an industry-wide issue; the PAMA tables do not establish how much of the passenger-car decline it accounts for.
In an October 8 report on the October 7 Senate committee briefing, adviser to the prime minister on industries and production Haroon Akhtar Khan said cabinet approval of a new auto policy was expected within two weeks. An expected timetable is not confirmation that the policy has been approved or implemented.
What the figures mean for car buyers
The sales report is a snapshot of vehicle volumes reported by participating manufacturers. It is not a complete count of all vehicle transactions or registrations in Pakistan, and it does not independently verify the timing of individual customer deliveries.
For buyers, the figures are useful for understanding which reported models and segments strengthened or weakened. They do not establish that showroom prices will fall, financing will become cheaper or booking periods will shorten. Those questions require separate, current information from manufacturers, banks or dealers.
Whether September's weakness continues will become clearer in later PAMA releases. For now, the supported conclusion is narrower but important: passenger-car sales were substantially higher in the first quarter than a year earlier, even though the quarter ended with a monthly slowdown.
