IMS Research has published a special report on automobile production in Pakistan for January 2026. Data shows that auto sales in January 2026 stood at 23,055 units, rising a robust 36% YoY and 74% MoM. The strong sequential growth reflects the typical January seasonality, where purchases are often deferred to the new calendar year, while YoY expansion highlights improving sector tailwinds amid lower interest rates and relatively better demand conditions. Tractor sales, however, were recorded at 2,505 units, declining 9% YoY and 26% MoM, pointing to continued weakness in the rural economy. Meanwhile, Truck and Bus sales surged 3.2x YoY to 1,002 units, reflecting improving activity levels, partly supported by stricter enforcement of axle-load regulations.

• INDU: Indus Motors recorded its highest monthly sales since June 2022, with volumes reaching 5,060 units in January, up 52% YoY and more than doubling on a MoM basis, primarily driven by strong performance in the sedan segment. The Corolla, Yaris and Cross portfolio posted robust growth of 90% YoY and 93% MoM to 4,078 units, while the Fortuner and Revo segment declined 17% YoY to 982 units. Overall, the company’s market share improved modestly, rising 2ppt YoY to 22%.
• HCAR: Honda posted a strong rebound in sales, recording its highest monthly volumes since June 2022, with sales rising 64% YoY and 86% MoM to 3,620 units. The growth was primarily driven by the sedan segment, where Civic and City sales reached 3,364 units, up 69% YoY and 93% MoM. Meanwhile, BR-V and HR-V volumes saw a relatively modest increase, rising 14% YoY and 25% MoM to 204 units. HCAR’s market share improved by 3ppt YoY to 16% in January.
• SAZEW: Sazgar sold 2,003 units of Haval in January, marking a 2.9x MoM increase, with the sequential uptick largely attributable to typical January seasonality. Meanwhile, SAZEW’s three-wheeler sales surged 4.3x MoM to 4,161 units in January, reflecting a sharp rebound in volumes.
• Tractor: Tractor sales have moderated following a November 2025 peak driven by the Punjab Green Tractor Scheme, with volumes at 2,505 units, down 9% YoY, reflecting continued weakness in the rural economy. MTL’s sales remained flat sequentially at 2,000 units, while AGTL’s volumes fell 63% MoM to 505 units, with market shares of 80% and 20%, respectively.
• Trucks: Growth in Trucks segment continues its momentum with a robust 79% YoY and 2.2x MoM growth, wherein sales reached 1,002 units during the month. GHNI delivered 632 units (trucks), up 58% YoY, alongside the sale of 18 buses and 189 units of the Isuzu D-Max, taking its total sales to 839 units, up 2.1x YoY.

Auto sales continue to show strong growth, with 7MFY26 industry volumes up 84% despite restrictions on auto financing. While near-term momentum remains encouraging, the sector faces key overhangs, including pending regulatory clarity on the New Energy Vehicles (NEV) policy and intensifying competition from Chinese OEMs. That said, recent government measures, notably the abolition of car imports under the Personal Baggage Scheme and tighter eligibility under the remaining Gift and Transfer of Residence schemes, should provide incremental support to domestic assemblers by curbing parallel imports.