Pak Suzuki Discontinues Cultus VXR, AGS; Fronx Added

In last two month passenger car production increased by 36% while sales surged 80% compared with the same period last year

KARACHI: Pak Suzuki Motor Company has discontinued Cultus VXR and Cultus AGS variants and stopped accepting new bookings from September 1, 2026. However, Suzuki Fronx has been added to its local lineup.

According to the letter, the Cultus VXL remains available for booking and sale, making it the only Cultus variant currently open for new bookings.

Pakistan’s automobile industry witnessed a sharp month-on-month decline in production and sales during August 2026, despite recording strong year-on-year growth during the first two months of the new fiscal year, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).

PAMA said the cumulative figures for July-August 2026 indicate a significant recovery across major segments. Passenger car production increased by 36% while sales surged 80% compared with the same period last year.

Production of trucks and buses rose 84%, while sales increased 73%. Two- and three-wheelers posted 29% growth in both production and sales. Farm tractor sales, meanwhile, grew by 5% year-on-year, although production declined 17%.

PAMA attributed uncertainty in the government’s tractor support scheme to weak demand, saying potential buyers were holding back their purchasing decisions until details of the new scheme are announced.

The association, however, cautioned that the year-on-year improvement is partly due to a low base effect, with overall industry volumes still well below the historic levels recorded in fiscal year 2022. PAMA said easing inflationary pressures, improved credit availability and better macroeconomic indicators have supported the recovery.

On a company-wise basis, Pak Suzuki continued to lead the passenger car market, with the Alto maintaining strong consumer demand. Suzuki motorcycles also recorded healthy growth in production and sales.

Indus Motor Company’s sales normalized in August after an exceptional increase in the previous month, while Fortuner and IMV models continued to show consistent performance. Honda Atlas Cars also reported improved production and sales in the sedan segment. However, sales of the HR-V have been affected by uncertainty over the sales tax treatment of hybrid vehicles.

Hyundai Nishat Motors’ performance is also expected to benefit from greater clarity on hybrid vehicle taxation, while the relaunch of the Elantra generated strong customer interest, with production and sales showing substantial growth.

Despite the positive year-on-year performance, August figures showed a significant deterioration from July. Passenger car production declined 23% month-on-month, while sales fell 20%. Production of light commercial vehicles, jeeps and pickups dropped 40%, with sales declining 29%. Tractor production decreased 23%, while sales fell 15%.

PAMA attributed the sharp monthly contraction primarily to prolonged uncertainty over the country’s automotive policy framework. The Automotive Industry Development and Export Plan (AIDEP) 2021-26 expired in June 2026, leaving manufacturers and consumers without clarity over the next policy regime.

The association said uncertainty over the sales tax treatment of hybrid, plug-in hybrid and range-extended electric vehicles has created significant bottlenecks and encouraged consumers to delay vehicle purchases.

According to PAMA, manufacturers are being left with unsold inventory while the government is also losing potential tax revenue. The association warned that continued uncertainty could further weaken market activity and called on the government to announce the new auto policy urgently.

PAMA said a clear policy framework is essential to protect manufacturing investment, restore consumer confidence and prevent the recent monthly contraction from developing into a prolonged downturn in the automobile sector.