Auto Market in Pakistan: Car Sales Decline 14% in December 2025, showing a notable MoM decline amid end-of-year delays. Despite this drop, the sector still posted a strong yearly performance, with 35% YoY growth compared to December 2024. Total car sales reached 13,280 units in December, contributing to 88,322 units in 1HFY26 sales, up from 60,676 units in 1HFY25.
Economic indicators affecting car sales, such as easing inflation and lower interest rates, supported overall growth. Top auto manufacturers in Pakistan, including Honda Atlas, Indus Motor, Hyundai Nishat, Sazgar Engineering, and PSMC, reported mixed results. Honda Atlas saw a 75% YoY growth with 1,943 units sold, while Indus Motor sold 2,312 units, up 40% YoY but down 35% MoM. Hyundai Nishat’s Sonata and Elantra models surged 105% and 52% YoY, demonstrating strong demand for popular sedans.
Other segments showed contrasting trends. Tractor sales declined sharply by 52% YoY to 3,399 units, while truck and bus sales surged 93% YoY but fell 30% MoM to 372 units. Two & three wheelers also performed well, with 160,408 units sold in December, and Atlas Honda CD70 achieving a record 143,091 units. These vehicle registration trends reflect shifting consumer preferences and the impact of macroeconomic sentiments.
Looking ahead, analysts predict continued momentum in auto sales for FY26, driven by hybrid and plug-in hybrid models. Manufacturers are expected to adjust production to meet rising demand while maintaining competitive pricing. The market shows resilience, and improvements in infrastructure and interest rates could further boost growth.
Conclusion:
The December slowdown highlights temporary MoM declines, but Pakistan’s auto market remains strong with robust YoY growth. Strategic planning and new models will shape the 2026 market.
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Auto Market in Pakistan: Car Sales Decline 14% in December 2025, driven by MoM decline and trends in vehicle registrations.
