Strong Recovery Driven by Cars and Light Commercial Vehicles
Pakistan’s automobile industry showed strong recovery during the first half of fiscal year 2026. Sales of cars, light commercial vehicles, pickups, and vans rose sharply. Total sales reached 88,322 units during July to December FY26. This marked a significant 46 per cent increase compared to 60,675 units sold in the same period of FY25.
Despite this growth, December 2025 showed mixed trends. Sales during the month stood at 13,280 units. This reflected a strong 35 per cent year-on-year increase. However, sales declined 14 per cent on a month-on-month basis. Analysts attributed this drop to the year-end effect. Buyers delayed purchases to secure new-year registrations.
According to Topline Securities, multiple factors supported yearly growth. Lower interest rates encouraged auto financing. Inflation eased gradually. Macroeconomic sentiment improved. New entrants also expanded consumer choice. These elements collectively boosted demand across segments.
Company-Wise Performance Shows Mixed Momentum
Honda Atlas Cars Limited recorded impressive gains. The company posted 75 per cent year-on-year growth in December. However, sales declined month-on-month to 1,943 units. Honda City and Civic models performed strongly. Their combined sales rose 79 per cent year-on-year to 1,739 units. BR-V and HR-V sales increased 46 per cent to 204 units. During July–December FY26, Honda sold 12,039 units, reflecting 70 per cent growth.
Indus Motor Company also showed strong performance. December sales rose 40 per cent year-on-year to 2,312 units. Corolla, Yaris, and Cross sales jumped 83 per cent year-on-year. However, these models declined 35 per cent month-on-month. Fortuner and IMV sales fell sharply. Total Indus Motor sales reached 20,563 units in IHFY26, up 64 per cent.
Hyundai Nishat Motors posted moderate but steady growth. Sales rose 11 per cent year-on-year and two per cent month-on-month. Sonata sales surged 105 per cent. Elantra sales grew 52 per cent. Hyundai sold 6,716 units during the first half, reflecting 58 per cent growth.
Sazgar Engineering sold 1,165 units in December, up five per cent month-on-month. Its half-year sales increased 72 per cent to 7,210 units. Pak Suzuki recorded modest growth. December sales rose nine per cent year-on-year to 6,531 units. Swift and Every models drove demand. Half-year sales reached 40,380 units, up 27 per cent.
Two-Wheelers Rise While Tractors Decline
Two- and three-wheeler sales remained strong. December sales declined three per cent month-on-month but rose 36 per cent year-on-year. Total sales reached 160,408 units. Half-year sales stood at 923,759 units, showing 33 per cent growth. Atlas Honda dominated the segment. It sold 790,978 units and achieved an all-time high monthly sale in December.
In contrast, tractor sales remained under pressure. December sales fell 52 per cent year-on-year. Half-year tractor sales declined 26 per cent to 12,929 units. Truck and bus sales showed recovery. December sales dropped month-on-month but surged 93 per cent year-on-year. Industry experts believe policy clarity and controlled imports supported sector recovery.
