Industry auto sales rose to 22.7k units in Jun’26, up 5% YoY and 29% MoM, bringing FY26 total to 206k units, a 39% YoY increase. The rebound in Jun’26 was driven by low sales in May due to Eid holidays and pre-buying ahead of a GST hike on hybrid vehicles.

Passenger car sales declined 13% YoY to 15k units, offset by a 79% YoY increase in LCV and pickup sales to 7k units. Truck sales grew 7% YoY, with GHNI outperforming at 84% YoY.

– **INDU:** Indus Motor reported 3,507 units in Jun’26, down 5% YoY, with Corolla sales falling 9% YoY. FY26 sales reached 45k units, up 34% YoY, but market share contracted to 15%.

– **HCAR:** Honda’s sales were 2,972 units in Jun’26, up 64% YoY, driven by strong demand for sedans and SUVs, maintaining a 13% market share.

– **SAZEW:** Sazgar achieved record sales of 2,720 units, a 70% YoY increase, expanding market share to 12%. Three-wheeler sales doubled YoY.

– **Tractors:** Sales increased 17% YoY, totaling 3,059 units, though demand from the Punjab Tractor Scheme is fading. MTL holds a 67% market share.

– **Trucks:** Truck sales rose 7% YoY to 905 units; GHNI grew 84% YoY, while GAL saw an 11% YoY increase.

Despite a strong FY26 recovery, the auto sector’s near-term outlook is uncertain due to a new 25% GST on hybrid vehicles and reduced customs duties on CBU imports. The upcoming Auto Policy is anticipated to provide clarity on the competitive landscape. (courtesy – IMS Research)