Pakistan Auto Sector: December 2025 & 1HFY26 Sales Analysis
The Pakistan auto sector demonstrated robust growth in December 2025 and the first half of fiscal year 2026 (1HFY26). Data from the Pakistan Automotive Manufacturers Association (PAMA) confirms significant increases across diverse segments. This surge is due to new market entrants, favorable economic conditions, and changing consumer preferences. This report examines key figures, company achievements, and the broader market outlook.
Pakistan Car Sales Show Resilience
In December 2025, Pakistan’s car sales reached 13,28 units. This marked a substantial 35% year-on-year (YoY) rise. However, a 14% month-on-month (MoM) decline was also observed. This robust monthly performance contributed to 88,322 units sold in 1HFY26, an impressive 46% YoY increase from 6,676 units in 1HFY25.
Topline Securities analysts attribute this yearly growth to several factors. These include new model introductions and a supportive macroeconomic environment. Lower interest rates, easing inflation, and improved economic sentiment also played a role. Conversely, the MoM dip is typically an end-of-year phenomenon. Buyers often delay purchases, anticipating new year registrations.
Key Players in Pakistan’s Passenger Vehicle Segment
Honda Atlas Cars (HCAR) Show Strong Growth
Honda Atlas Cars (HCAR) recorded a remarkable 75% YoY growth in December 2025. However, sales declined month-on-month to 1,943 units. The popular City & Civic models performed strongly, increasing 79% YoY to 1,739 units. Furthermore, BRV & HRV models also saw a healthy 46% YoY rise, reaching 2,4 units.
Indus Motor Company (INDU) Sees Mixed Results
Indus Motor Company (INDU) reported a robust 4% YoY growth, totaling 2,312 units. Corolla, Yaris, and Cross models collectively soared by 83% YoY. This occurred despite a 35% MoM decline, settling at 2,116 units. In contrast, the Fortuner and IMVs segment faced a significant downturn, plunging 61% YoY and 67% MoM to only 196 units.
Hyundai Nishat & Sazgar Engineering Gain Momentum
Hyundai Nishat posted a respectable 11% YoY growth and a 2% MoM increase in sales. Sonata and Elantra models largely propelled this, rising 1,5% and 52% YoY, respectively. Likewise, Sazgar Engineering (SAZEW) showed positive momentum. Their sales reached 1,165 units in December 2025, a 5% MoM increase.
Pak Suzuki Motor Company (PSMC) Achieves Steady Progress
Pak Suzuki Motor Company (PSMC) demonstrated modest yet steady growth, achieving 6,531 units. This represents a 9% YoY increase. A nearly 12-fold surge in Every sales primarily drove this performance. Additionally, Swift sales increased by 51%, reaching 1,33 and 1,9 units respectively in December 2025.
Diverse Performance in Other Auto Segments
Two & Three Wheelers Segment Grows
The two and three-wheelers segment witnessed a 36% YoY increase. Despite this, it experienced a 3% MoM dip, finishing at 16,4,8 units in December 2025. Sales for this category hit 923,759 units in 1HFY26, marking a 33% YoY rise. Atlas Honda (ATLH), a leading player with its popular CD7 bike, achieved an all-time high monthly sales figure of 143,91 units that month.
Tractor Sales Decline, Trucks & Buses Surge
In contrast to other segments, tractor sales sharply declined by 52% YoY and 7% MoM, totaling 3,399 units in December 2025. However, the truck and bus segment surged impressively with 93% YoY growth. This occurred despite a 3% MoM decline, settling at 372 units.
Future Outlook: Sustained Growth for Pakistan Auto Sector
Topline Securities forecasts continued positive momentum in auto sales throughout FY26. This optimistic outlook is based on anticipated reductions in interest rates. Furthermore, new hybrid and plug-in hybrid models are expected to enter the market. Consequently, easing inflationary pressures and overall economic improvement should bolster demand in the coming months. This promises a vibrant future for the Pakistan auto sector.
