Vehicle Registrations Hit 10-Year High in Dec 2025 📈

• Overall Performance: December registrations surged to 48,525 units, the highest monthly level in a decade. Total 2025 passenger vehicle volumes grew by ~50% compared to the 2019 pre-COVID baseline, though they remained below the 2015 tax-driven peak. • Fiscal Impact: Vehicle imports generated Rs. 905 Bn in tax revenue in 2025, contributing roughly 2.7% to national GDP. This windfall significantly supported fiscal consolidation, with taxes accounting for 15% of real GDP growth in Q3. • Sector & Segment Shifts: • SUVs & Crossovers: Now dominate the market at 52% of registrations, up from just 16% in 2019. • Motor Cars: Declined to a 42% share from 74% in 2015. • EVs & Hybrids: Strong momentum in December with 3,220 EV registrations (led by BYD) and 3,142 hybrids (led by Honda and Toyota). • Market Origins: Japanese vehicles maintain the largest share at 62%. Notably, Chinese brands rose to 8% of the market, while Indian origin vehicles saw a sharp decline to 8% from their 2015 highs. • Economic Context: Total 2025 industry turnover is estimated at Rs. 1.688 Trillion (~5% of GDP). Analysts suggest the import surge has not strained foreign exchange, as it accounted for only 12.86% of current account outflows, supported by strong tourism and remittances.