Missing auto policy amid growing auto sales

Business Recorder reported that car sales in Pakistan kept climbing even though the new auto policy has yet to appear. According to the Pakistan Automotive Manufacturers Association, passenger car, SUV and pickup volumes rose 19 percent to 50,480 units in 1QFY27. Passenger cars alone climbed 43 percent to 41,872 units, while the combined share of Suzuki, Toyota and Honda rose from 82 to 86 percent.

The official figures omit several players, including Kia, Changan, Omoda, Jaecoo, BYD, MG and GAC. BR Research estimates these companies sold about 20,000 vehicles, including CBU imports, which lifts the industry total to roughly 70,000 units. Suzuki leads the reported ranking with 22,615 units, followed by Toyota with 13,260 and Honda with 7,401, while Chinese brands are closing in on Honda for third place.

Tax policy is a key factor in how demand is splitting across technologies. Concessions on locally assembled hybrids expired in June, raising the applicable general sales tax to 25 percent. The government later cut the rate to 18 percent for qualifying locally made hybrids up to 2,000cc, but expectations of further PHEV relief are leading assemblers and buyers to hold back. BEVs and REEVs, meanwhile, benefit from a one percent sales tax concession extended for another year, and BR Research puts their combined sales at about 6,000 units in 1QFY27.