IMS Research’s recent report indicates that Pakistan’s auto sales in May’26 totaled 17,660 units, up 19% YoY but down 20% MoM, mainly due to a 50% YoY increase in PSMC volumes. The decline was attributed to fewer working days from Eid Holidays, while overall demand remains strong. Passenger car sales rose 19% YoY to 13,211 units, and the LCV and pickup segments grew 22% YoY to 4,449 units. Truck sales surged 64% YoY, and tractor volumes increased 67% YoY.

Indus Motor (INDU) reported a 28% YoY and 19% MoM drop in sales to 3,496 units, driven by competition from Chinese brands, resulting in a market share decline to 20%. Honda (HCAR) saw sales of 2,230 units, up 11% YoY, while Sazgar’s sales rose 75% YoY to 1,604 units, bolstering its market share to 10%.

Tractor sales rose 67% YoY but fell 7% MoM to 2,616 units, with MTL maintaining a 67% market share. Truck volumes increased 64% YoY to 844 units, but sales were flat sequentially.

Despite the strong industry rebound, regulatory uncertainty clouds the outlook, with the upcoming federal budget and NEV policy expected to influence future GST and duty frameworks for local manufacturing and CKD imports.