SUVs Drive Pakistan Auto Market Recovery in FY26
Pakistan’s auto market is showing signs of recovery in FY26, with passenger cars, SUVs, and LCV sales rising 47 percent year-on-year to nearly 75,000 units in the first five months. While this marks a significant rebound, volumes remain a third below the industry’s historic peak in FY22, when new entrants like Hyundai, Kia, and Changan reshaped the market with fresh model launches.
The standout trend in FY26 is the surge in SUVs and LCVs, which have grown over 60 percent from last year and now account for a quarter of total sales—the highest share ever. This shift has prompted nearly all assemblers, including Suzuki, to introduce new SUV models to capture the high-margin segment. Meanwhile, passenger car demand has improved but remains uneven, with sedans losing ground to utility vehicles despite gains by Toyota and Honda.
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Suzuki continues to dominate with hatchbacks, holding 56 percent of the passenger car market, while Toyota and Honda trail with 26 percent and 15 percent respectively. Competition is intensifying as Chinese brands like Haval gain traction, reducing reliance on Japanese assemblers. Looking ahead, growth is expected to be driven by larger vehicles and SUVs, supported by cheaper financing costs and evolving consumer preferences. The market pie may be smaller than before, but its slices are shifting toward high-margin utility models.
