Karachi, January 12, 2026 — Pakistan’s automobile industry recorded a robust recovery in the first half of fiscal year 2025-26, with car sales surging by 46% year-on-year (YoY), driven by improved macroeconomic conditions, lower interest rates, and new model launches.
According to data released by the Pakistan Automotive Manufacturers Association (PAMA), car sales stood at 13,280 units in December 2025, reflecting a strong 35% YoY increase, although sales declined 14% month-on-month (MoM). Cumulatively, total car sales during July–December FY26 reached 88,322 units, compared to 60,676 units in the same period last year.
Market analysts, including Topline Securities and Arif Habib Limited, attributed the annual growth to easing inflation, improved consumer sentiment, better auto financing availability, and the entry of new models. However, the MoM decline in December was largely due to the year-end effect, as buyers postponed purchases to register vehicles in the new calendar year.
Company-wise, Honda Atlas Cars (HCAR) posted an impressive 75% YoY growth, despite a 26% MoM decline. Indus Motor Company (INDU) reported 40% YoY growth, though sales dipped sharply MoM due to weaker Fortuner and Hilux demand. Pak Suzuki Motor Company (PSMC) recorded modest YoY growth, supported by a sharp rise in Every and Swift sales.
In the broader auto sector, two- and three-wheeler sales rose 36% YoY in December, while tractor sales plunged 52% YoY. Truck and bus sales, however, jumped 93% YoY.
Outlook: Analysts expect positive momentum in FY26, supported by lower interest rates, easing inflation, and the introduction of hybrid and plug-in hybrid vehicles, which are likely to further strengthen demand in the coming months.