Car sales rise 40pc YoY in March

ISLAMABAD: Car sales in Pakistan reached 15,531 units in March 2026, marking a 40% increase compared with the same month last year, according to figures released by the Pakistan Automotive Manufacturers Association (PAMA).

On a month-on-month basis, however, sales fell by 9% in March.

As per details, a report by Topline Securities said the monthly decline was mainly caused by a 23% month-on-month drop in sales by Pak Suzuki Motor Company (PSMC).

The report added that if PSMC is excluded, overall car sales recorded a 4% month-on-month increase, indicating that the broader market showed some resilience despite the overall decline from February.

Factors behind annual growth

According to the Topline Securities report, the strong year-on-year increase in March sales was supported by the arrival of new players in the market, lower interest rates, easing inflation and improving macroeconomic sentiment.

The latest PAMA data points to a significant improvement in annual sales volumes, even as the industry posted a decline on a monthly basis. The figures suggest that while one major assembler weighed on the month-on-month performance, the wider market continued to benefit from a more supportive economic environment.

PAMA’s numbers showed that March remained stronger than the corresponding period last year, with the annual increase reflecting improved demand conditions in the auto sector.

Topline Securities linked this trend to multiple factors already in play, including softer borrowing costs and easing price pressures, which it said helped support consumer sentiment. The report also cited improving macroeconomic sentiment and the contribution of new market entrants as reasons behind the year-on-year jump.

The data released by PAMA and the assessment by Topline Securities together showed a mixed monthly and annual picture for the sector in March 2026: a notable rise from a year earlier, but a decline from the previous month driven largely by weaker sales at PSMC.

Excluding that company’s performance, the market posted a month-on-month gain, according to the brokerage report.

The March figures are the latest indication of changing conditions in Pakistan’s automobile market, where annual growth has been supported by easing inflation, lower interest rates, new entrants and improving macroeconomic sentiment, as highlighted in the Topline Securities assessment.