Karachi: Car sales in Pakistan experienced a significant increase in December 2025, rising by 35% compared to the same month last year, according to data released by the Pakistan Automotive Manufacturers Association (PAMA). This growth brought the total number of car sales in December to 13,280 units. However, the sales saw a decline of 14% from the previous month.
The first half of the fiscal year 2026 saw a substantial 46% year-on-year increase in car sales, totaling 88,322 units. This marked growth was largely driven by new entrants in the market, reduced interest rates, and an improved macroeconomic outlook.
The month-on-month sales decline was attributed to the typical end-of-year slowdown, as consumers delayed purchases in anticipation of new year vehicle registrations.
Honda Atlas Cars reported a 75% year-on-year growth, though it saw a decrease on a month-to-month basis, selling 1,943 units in December. The City and Civic models experienced a 79% increase in sales, while BRV and HRV models rose by 46%.
Indus Motor Company recorded a 40% increase in year-on-year sales, with a total of 2,312 units sold. However, sales of the popular Corolla, Yaris, and Cross models fell by 35% compared to the previous month. The Fortuner and IMVs models saw significant declines in both year-on-year and month-to-month sales.
Hyundai Nishat experienced an 11% increase in year-on-year sales, driven by significant growth in Sonata and Elantra model sales. Sazgar Engineering reported a 5% month-on-month increase, selling 1,165 units.
Pak Suzuki Motor Company saw a modest 9% year-on-year growth, reaching 6,531 units. This was primarily due to a substantial rise in Every model sales and a 51% increase in Swift sales.
Sales of two and three-wheelers increased by 36% year-on-year but saw a slight decline of 3% month-on-month, amounting to 160,408 units in December. Atlas Honda recorded impressive sales of its CD70 bike, achieving an all-time high with 143,091 units sold.
Tractor sales, however, experienced a sharp decline of 52% year-on-year and 7% month-on-month. Meanwhile, truck and bus sales surged by 93% year-on-year but fell 30% compared to the previous month.
Looking ahead, industry analysts expect the positive trend in auto sales to continue into fiscal year 2026. Lower interest rates, alongside the introduction of new hybrid and plug-in hybrid models, are anticipated to further bolster demand. Additionally, easing inflation and improved economic conditions are expected to support continued growth in the automotive sector.