Automobile sales in Pakistan decline in December 2025

According to a report by AHL Research, in December 2025, the Pakistani automotive sector witnessed a significant drop in sales, with total units sold falling to 13,300—a 14% month-on-month (MoM) decline. However, this figure represents an impressive 35% increase compared to the same month last year, as reported by PAMA. The December sales decline is largely due to the year-end effect, as consumers postponed vehicle purchases to January in hopes of securing registrations under the new calendar year.

Cumulatively, for the first half of fiscal year 2026, auto sales rose 46% year-on-year (YoY) to 88,300 units. Contributing factors to the overall rise in sales include several new vehicle launches and improved macroeconomic conditions, such as lower inflation rates and more favorable auto financing options, thanks to reduced interest rates.

Diving deeper into individual performance, Indus Motor Company Ltd (INDU) experienced a substantial 40% MoM drop in sales, selling 2,312 units. This decline was heavily influenced by a staggering 67% drop in sales of their popular Fortuner and Hilux models, while other models like the Corolla, Yaris, and Corolla Cross saw a 35% decline.

In contrast, Pak Suzuki Motor Company Ltd (PSMC) reported a modest 1% MoM decline in total sales to 6,631 units. Notably, models such as the Ravi, Cultus, Swift, and Alto experienced significant sales declines of 5% to 79%, while the Every model posted a remarkable 133% MoM rise.

Honda Atlas Cars (HCAR) registered a 26% decrease in sales, primarily due to a similar drop in performance for Civic and City models, while the BR-V/HR-V also saw an 18% decline.

On a brighter note, Sazgar Engineering (SAZEW) saw a 5% increase in sales, selling 1,165 units. Two-wheeler sales also experienced a slight decline, down 3% MoM, despite Atlas Honda (ATLH) achieving record monthly sales of 143,091 units, up 2% MoM.

However, sales in the three-wheeler segment fell sharply by 21% MoM, with Sazgar Engineering (SAZEW) reporting 974 units sold, a 44% MoM decline. Additionally, tractor sales decreased by 7% MoM, although AGTL noted a slight 1% MoM increase to 1,372 units, while MTL saw a 12% decrease to 2,027 units.

Overall, while December’s numbers reflect a seasonal decline, the year-on-year growth indicates a promising trend for the automotive sector as it moves into the new year.