Auto profits surge 39% on higher sales, financing

The sector posted an overall gross margin of 15.1% and a net margin of 9.1%.Sales of passenger cars, light commercial vehicles and 4x4s rose by 32.4% to 62,416 units during the quarter, compared with 47,155 units in the same period of last year.Improved access to financing also supported demand.

Outstanding auto financing climbed by 38% year-on-year to Rs381.69 billion by the end of June 2026, compared with Rs277 billion a year earlier.

The sector's other income increased by 53.5% to Rs11.4 billion, mainly due to one-off gains related to the Sindh Infrastructure Development Cess and higher returns on cash balances.

Sazgar Engineering Works emerged as the sector's largest earnings contributor, posting a 150.6% increase in quarterly profit to Rs8.7 billion.

Its revenue surged by 180.7%, supported by a more than twofold rise in four-wheeler sales to 6,549 units and deliveries of the Tank 500.Atlas Honda's earnings rose by 25.2% to Rs6 billion, while Honda Atlas Cars recorded a threefold increase in profit to Rs2.5 billion.

Millat Tractors' earnings increased by 36.3% to Rs1.8 billion as its sales volume grew by 42.4%.Indus Motor's profit, however, declined by 5.4% to Rs6.1 billion amid lower revenue and growing competition.

Ghandhara Automobiles' consolidated profit fell by 14.6% to Rs1.6 billion, while Ghandhara Industries' earnings remained broadly unchanged at Rs1.7 billion.Industry-wide tractor sales grew by 42.6% to 8,499 units, while truck sales rose by 37.2% to 2,561 units.

Two-wheeler sales advanced by 27.4% to 530,481 units during the period under review.Coordinator to the Prime Minister for Commerce and Industries Rana Ihsan Afzal Khan has underscored the need for competitive localisation, technological advancement and a faster transition towards electric mobility to secure the future of Pakistan's automotive industry.He expressed these views while addressing the automotive industry leaders, government stakeholders and representatives of academia at the Paapam Symposium, held on….

He toured stalls of leading automobile companies, including emerging electric vehicle manufacturers.Rana Ihsan Afzal appreciated the exhibitors and manufacturers for their vital contribution to the growth, innovation and development of Pakistan's automotive industry.Addressing the gathering, he said localisation must go beyond domestic production and be strategically aligned with global competitiveness, affordability, quality and reliability.

He stressed that consumers must be provided with greater choice and confidence through a competitive and technologically advanced automotive ecosystem.Highlighting the sector's substantial economic footprint, the PM coordinator said every vehicle produced in Pakistan supported an extensive value chain comprising manufacturers, vendors, engineers, technicians and workers.

The automotive sector contributes nearly 4% to the national GDP and provides employment to millions of Pakistanis.He reaffirmed the government's resolve to work closely with industry stakeholders on developing policies that would be inclusive, future-oriented, consistent and fair.Commending the auto industry for its resilience and continued growth despite challenging economic conditions, Rana Ihsan Afzal said the time had come for the sector to prepare decisively for emerging technologies, particularly electric….

"The future of Pakistan's automotive industry lies in competitive localisation, innovation and electric mobility.

The government remains committed to creating an enabling environment in which the industry can grow, invest and compete internationally," he said.