Pakistan’s automobile sector continued its robust performance in Q2 FY26, posting a profit of Rs. 17.7 billion, up 18.7 percent year-on-year (YoY). The growth has been largely attributed to rising vehicle sales and supportive government programs.
Key Sector Highlights December 2025 Quarter
| Category | Q2 FY26 | YoY Change |
|---|---|---|
| Total Profit | Rs. 17.7 B | +18.7% |
| PSX-listed Auto Units Sold | 21,500 | – |
| Two-Wheeler Sales Atlas Honda Limited | 423,700 units | +34% |
| Other Income Growth | – | +24.7% |
Sales of passenger cars and SUVs were bolstered by Indus Motor Company and other PSX-listed carmakers, reflecting rising demand for popular models. Atlas Honda recorded significant growth in two-wheeler sales, selling 423,700 units in the quarter, representing a 34 percent increase YoY. High and medium-powered tractor sales benefited from the Punjab government tractor subsidy scheme, supporting rural and agricultural demand. Improved cash positions led to a 24.7 percent rise in other income, boosting overall profitability for listed auto firms.
The automobile sector’s growth demonstrates a strong consumer demand trend across cars, two-wheelers, and tractors. Government support programs such as the tractor scheme contributed to overall sales. The increase in profitability was supported not only by higher sales volume but also by better financial management, reflected in the rise in other income. Analysts at Arif Habib Limited (AHL) noted that the auto sector is outperforming expectations, making it one of the strongest performing segments on the PSX in the December 2025 quarter.
