Pakistan’s auto industry recorded a month-on-month decline in December 2025, even as yearly sales remained firmly in positive territory, reflecting a market adjusting to seasonal trends after a strong recovery phase.
According to data released by the Pakistan Automotive Manufacturers Association (PAMA), car sales stood at 13,280 units in December 2025, marking a 14% decline compared to November, while still showing a 35% year-on-year increase.
Despite the monthly slowdown, total car sales for 1HFY26 reached 88,322 units, up 46% year-on-year from 60,676 units in the same period last year.
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Why Car Sales Fell Month-on-Month
Analysts at Topline Securities attribute the December dip primarily to the end-of-year effect, as buyers delayed vehicle deliveries and new purchases to secure new-year registration plates.
On a yearly basis, however, the sector continues to benefit from new market entrants, lower interest rates, easing inflation, and improving macroeconomic sentiment, all of which have helped revive demand after a prolonged slowdown.
Company-Wise Performance in December 2025
Honda Atlas Cars (HCAR)
Honda Atlas posted a strong 75% year-on-year increase, though sales declined on a month-on-month basis to 1,943 units.
- City & Civic models: Up 79% YoY to 1,739 units
- BR-V & HR-V models: Up 46% YoY to 204 units
Indus Motor Company (INDU)
Indus Motor recorded 40% YoY growth, with total sales reaching 2,312 units.
- Corolla, Yaris & Corolla Cross: Up 83% YoY, but down 35% MoM to 2,116 units
- Fortuner & IMVs: Declined 61% YoY and 67% MoM to 196 units
Hyundai Nishat and Other Automakers
Hyundai Nishat reported 11% YoY growth and a modest 2% MoM increase, supported by a 105% YoY rise in Sonata sales and a 52% YoY increase in Elantra sales.
Sazgar Engineering (SAZEW) posted 1,165 units, showing a 5% month-on-month increase, while Pak Suzuki Motor Company (PSMC) recorded 9% YoY growth to 6,531 units.
PSMC’s performance was driven by:
- Nearly 12-fold growth in Every sales to 1,330 units
- 51% increase in Swift sales to 1,009 units
Two- and Three-Wheelers Continue Strong Momentum
Sales of two- and three-wheelers rose 36% year-on-year, though they dipped 3% month-on-month to 160,408 units in December.
Total 1HFY26 two- and three-wheeler sales reached 923,759 units, up 33% YoY.
Atlas Honda, maker of the popular CD70 motorcycle, once again recorded an all-time high monthly sales figure of 143,091 units.
Tractor, Truck, and Bus Sales Show Mixed Trend
- Tractor sales: Down 52% YoY and 7% MoM to 3,399 units
- Truck and bus sales: Up 93% YoY, but down 30% MoM to 372 units
Related: Punjab Green Tractor Scheme Phase-III Eligibility Criteria Announced
Outlook for FY26 Auto Sales
Topline Securities expects positive momentum to continue through FY26, supported by lower interest rates, easing inflation, and the launch of new hybrid and plug-in hybrid models.
Improving economic activity and greater product diversity are likely to further strengthen demand across passenger vehicles and motorcycles in the coming months.
