Pakistan’s automobile sector continued its robust growth trajectory in the December 2025 quarter, posting a profit of Rs17.7 billion. This represents an 18.7 percent year-on-year increase, reflecting unprecedented momentum in vehicle sales.
Rising Vehicle Sales Drive Sector Growth
According to market analysts, rising demand for cars, motorcycles, and tractors was the primary driver of the sector’s strong performance. PSX-listed auto companies collectively sold 21,500 vehicles during the quarter, marking a notable increase compared to the same period last year.
The two-wheeler segment experienced particularly strong growth. Atlas Honda Limited recorded a 34 percent rise in sales, delivering 423,700 units in the second quarter of FY26. This surge highlights the increasing consumer preference for affordable and fuel-efficient mobility solutions across Pakistan.
Tractor Sales Boosted by Government Scheme
Sales of high and medium-powered tractors also supported the sector’s expansion. The Punjab government’s tractor subsidy program incentivized agricultural mechanization, leading to higher purchases and strengthening revenue streams for listed manufacturers.
Improved Financial Position Across Auto Companies
In addition to sales growth, PSX-listed automakers reported a 24.7 percent rise in other income, reflecting an improved cash position. Analysts note that this increased liquidity provides companies with greater flexibility for investment in production, technology, and expansion initiatives.
The combination of rising consumer demand, government support for agricultural machinery, and stronger financial fundamentals has positioned Pakistan’s automobile sector as a key contributor to economic growth and industrial output.
Outlook for the Sector
Industry experts predict that continued urbanization, expanding middle-class demand, and supportive policies will sustain the auto sector’s performance in the coming quarters. With production capacities adapting to increased consumer needs, listed companies are likely to maintain profitability and market share growth.
As the sector evolves, innovation in electric vehicles, two-wheelers, and sustainable transport solutions may further enhance competitiveness and attract investment. The strong December 2025 quarter signals a promising year ahead for PSX-listed automotive firms in Pakistan.
