Pakistan’s auto industry reported a 35% year-on-year (YoY) increase in sales for December 2025, with a total of 13,280 units sold. However, the sector experienced a 14% decline in sales month-on-month (MoM), primarily due to the seasonal year-end effect, where buyers typically defer purchases to the new year. Despite the MoM decline, the YoY growth reflects a strong recovery in demand, especially in the car segment.
According to a report by Topline Securities, Honda Cars (HCAR) reported a 75% YoY increase, selling 1,943 units, with strong performance in the Civic and City models, which saw a 79% YoY increase to 1,739 units. The BR-V and HR-V models also grew by 46% YoY to 204 units.
Indus Motor Company saw a 40% YoY increase, with 2,312 units sold, although this was down 40% MoM. The Corolla, Yaris, and Cross models saw strong performance, rising 83% YoY while down 35% MoM to 2,116 units. Similarly, Fortuner and Revo models showed 61% YoY and 67% growth, selling 196 units.
Sazgar Engineering Works (SAZEW) experienced a 5% MoM increase in its Haval sales, with 1,165 units sold.
Sales in the tractor market saw a 52% YoY drop, totaling 3,399 units, largely driven by the high-base effect of deliveries under the Green Tractor Scheme in December 2024. However, the car segment showed impressive growth, particularly in Indus Motor Company’s (INDU) and Honda Cars (HCAR) sales.
The tractor segment recorded a sharp decline, driven by the base effect from last year’s government scheme, but Millat Tractors (MTL) and Al-Ghazi Tractors (AGTL) continue to hold substantial market shares, with 2,027 and 1,372 units sold, respectively.
Despite a slight downturn in the month-on-month figures, the overall performance of the auto sector remains strong, supported by sector tailwinds. The introduction of the New Energy Vehicles (NEV) policy is expected to provide further boost, although regulatory clarity is still awaited. Positive developments like the cabinet’s approval to abolish car imports under the Personal Baggage Scheme also provide relief to the domestic industry.
The sector is also closely monitoring the impact of regulatory changes such as the tightening of car import conditions under the Gift and Transfer of Residence Schemes, which are expected to support local manufacturers and reduce pressures from the import sector.
