Pakistan’s automobile industry showed strong recovery in December 2025, recording a 35 percent year-on-year increase in sales with total volumes reaching 13,280 units.
Despite this positive annual growth, sales declined by 14 percent compared to November due to the usual year-end trend, as many buyers delay purchases until the new year.
According to market data, the car segment remained the main driver of growth. Honda Cars Pakistan reported an impressive 75 percent year-on-year increase, selling 1,943 vehicles.
The Civic and City models led the performance, with sales rising 79 percent to 1,739 units. Honda’s BR-V and HR-V models also performed well, posting a 46 percent annual increase.
Indus Motor Company also delivered strong results, with sales up 40 percent year-on-year at 2,312 units, although volumes dropped 40 percent on a monthly basis.
Corolla, Yaris, and Cross models recorded an 83 percent annual rise, while Fortuner and Revo sales grew sharply as well. Sazgar Engineering Works posted steady growth, with Haval sales increasing 5 percent month-on-month to 1,165 units.
In contrast, the tractor segment faced a major slowdown. Sales fell 52 percent year-on-year to 3,399 units, mainly due to the high base created by the Green Tractor Scheme in December 2024. Millat Tractors and Al-Ghazi Tractors remained market leaders despite the decline.
Industry analysts say overall sector momentum remains positive. Supportive policies, expected benefits from the New Energy Vehicles policy, and restrictions on used car imports are likely to strengthen local manufacturers in the coming months.