By Digital Spartans 
Pakistan’s automobile sector delivered robust results in the December 2025 quarter, posting a combined profit of Rs. 17.7 billion — an 18.7 percent year-on-year (YoY) increase.
According to Arif Habib Limited (AHL), the growth was primarily driven by a significant rise in vehicle sales across major listed manufacturers on the Pakistan Stock Exchange (PSX).
During the quarter, PSX-listed automobile companies collectively sold 21,500 units, reflecting improving consumer sentiment and easing macroeconomic pressures. The increase in sales volume played a key role in boosting earnings across the sector.
The two-wheeler segment also witnessed remarkable growth. Atlas Honda Limited (PSX: ATLH) recorded a 34 percent surge in demand, selling 423,700 motorcycles in the second quarter of FY26. The strong performance highlights sustained demand for affordable mobility solutions amid improving purchasing power.
Industry analysts attribute the sector’s expansion to factors such as relatively stable currency conditions, improved financing availability, and pent-up consumer demand. Lower inflationary pressures compared to previous quarters also contributed to increased vehicle affordability.
Market observers believe that if economic stability continues, auto manufacturers could sustain momentum in the coming quarters. However, they caution that policy changes, import restrictions, or currency volatility could impact cost structures and future profitability.
The December quarter performance signals renewed strength in Pakistan’s auto industry, with both passenger vehicles and motorcycles contributing significantly to overall sector growth.