By Pakistan’s automobile sector continued its recovery trajectory as car sales reached 13,280 units in December 2025, according to data released by the Pakistan Automotive Manufacturers Association (PAMA). The figure represents a 35% year-on-year (YoY) increase, although sales declined 14% month-on-month (MoM) due to seasonal and registration-related factors.
Cumulatively, 1HFY26 car sales stood at 88,322 units, reflecting a strong 46% YoY growth compared to 60,676 units in 1HFY25. Analysts view this as a clear sign of improving consumer confidence and stabilizing macroeconomic conditions.
Factors Driving Auto Sales Growth
According to Topline Securities, the robust yearly growth is primarily driven by new market entrants, lower interest rates, easing inflation, and improving macroeconomic sentiment. However, the MoM decline in December is attributed to the typical year-end effect, where buyers delay vehicle purchases to secure new-year registrations.
Company-Wise Performance Overview
Honda Atlas Cars (HCAR) reported impressive 75% YoY growth, though monthly sales slipped to 1,943 units. City and Civic models surged 79% YoY to 1,739 units, while BR-V and HR-V sales increased 46% YoY to 204 units.
Indus Motor Company (INDU) posted 40% YoY growth, selling 2,312 units in December 2025. Combined sales of Corolla, Yaris, and Corolla Cross rose 83% YoY, although they declined 35% MoM. In contrast, Fortuner and IMV sales dropped sharply by 61% YoY and 67% MoM.
Hyundai Nishat Motors recorded 11% YoY growth and 2% MoM growth, supported by a strong 105% YoY increase in Sonata and a 52% YoY rise in Elantra sales. Sazgar Engineering (SAZEW) sold 1,165 units, reflecting 5% MoM growth.
Pak Suzuki Motor Company (PSMC) achieved 9% YoY growth, reaching 6,531 units, mainly driven by a nearly 12-fold increase in Every sales and a 51% rise in Swift, which sold 1,330 and 1,009 units, respectively.
Two & Three Wheelers, Tractors, and Commercial Vehicles
Sales of two and three wheelers rose 36% YoY but declined 3% MoM to 160,408 units in December 2025. Atlas Honda (ATLH) once again recorded all-time high monthly sales of 143,091 units. For 1HFY26, bike sales reached 923,759 units, up 33% YoY.
Meanwhile, tractor sales fell sharply by 52% YoY to 3,399 units, reflecting pressure in the agricultural sector. Truck and bus sales, however, surged 93% YoY, though they declined 30% MoM to 372 units.
Outlook for FY26
Topline Securities expects positive momentum in Pakistan’s auto sector to continue in FY26, supported by lower interest rates, easing inflation, and the introduction of new hybrid and plug-in hybrid vehicles. Improving economic activity is also expected to further strengthen demand in the coming months.
