By Pakistan’s motorcycle industry delivered its strongest annual performance on record during fiscal year 2025-26 (FY26), with motorcycle and three-wheeler sales reaching an all-time high as improving economic conditions, easing inflation, and stronger consumer confidence boosted demand across the country.
According to data released by Arif Habib Limited, motorcycle sales surged to 1.932 million units during FY26, surpassing the previous industry record of 1.853 million units achieved in FY21. When three-wheelers are included, total industry sales climbed to an unprecedented 1.974 million units, making FY26 the best-performing year in Pakistan’s two- and three-wheeler market history.
The impressive performance highlights the automotive sector’s continued recovery following the slowdown experienced during FY23 and FY24, when inflationary pressures, high financing costs, and economic uncertainty weighed heavily on consumer spending.
Economic Recovery Drives Motorcycle Demand
Industry analysts attribute the record-breaking sales to several positive economic developments witnessed during FY26. Inflation moderated significantly compared to previous years, while household purchasing power gradually improved, encouraging consumers to invest in personal transportation.
Motorcycles remain Pakistan’s most affordable and practical mode of transport for millions of people, particularly amid rising urbanization and increasing commuting needs. As economic activity picked up across the country, demand for new motorcycles also strengthened, resulting in record annual sales.
The sector also benefited from improving consumer confidence and increased spending, reflecting greater optimism about Pakistan’s economic outlook.
Atlas Honda Extends Market Leadership
Atlas Honda further cemented its position as Pakistan’s largest motorcycle manufacturer by achieving record annual sales of approximately 1.69 million motorcycles during FY26.
The company accounted for nearly 88% of the country’s motorcycle market, underlining its dominant position and extensive nationwide dealer and service network. Atlas Honda’s popular commuter models continue to enjoy strong demand due to their reliability, fuel efficiency, affordability, and resale value.
The company’s commanding market share also reflects the trust Pakistani consumers have placed in the brand over several decades.
United Auto Holds Second Position
United Auto Industries remained the second-largest motorcycle manufacturer in Pakistan, recording sales of 190,800 units during FY26.
The company continues to compete in the entry-level commuter motorcycle segment by offering affordable alternatives for budget-conscious buyers. Growing demand in both urban and rural markets contributed to its healthy annual sales performance.
Sazgar Leads Three-Wheeler Segment
In the three-wheeler category, Sazgar Engineering retained its leadership by selling 28,600 units during FY26.
Three-wheelers remain an essential component of Pakistan’s transport ecosystem, supporting passenger mobility and commercial cargo transportation across cities and rural areas. Continued demand for these vehicles contributed to the industry’s overall record-breaking performance.
Positive Outlook for Pakistan’s Automotive Industry
The historic sales figures are being viewed as a strong indicator of Pakistan’s broader economic recovery and manufacturing resilience. Higher motorcycle and three-wheeler sales not only benefit manufacturers but also support thousands of jobs across the automotive supply chain, including parts manufacturers, dealerships, service centers, and logistics providers.
Industry experts believe that if macroeconomic stability continues, consumer confidence remains strong, and inflation stays under control, Pakistan’s motorcycle industry could sustain its growth momentum in the coming years. Increased investment in local manufacturing, technological advancements, and the gradual introduction of electric two-wheelers may further reshape the market and create new opportunities for both manufacturers and consumers.
FY26’s record-breaking performance marks a significant milestone for Pakistan’s automotive sector, reaffirming the motorcycle industry’s role as one of the country’s most important manufacturing segments and a key contributor to economic growth.
Disclaimer: Sales figures are based on data released by Arif Habib Limited. Market performance and company sales may be revised if updated industry statistics become available.
