Pakistan\u2019s car industry is expected to wrap up the year (FY25) on a high. Despite rising costs and currency pressure, most automakers are likely to post healthy profits for the last quarter (April\u2013June 2025). Let\u2019s take a look at what\u2019s fueling this rebound, and what might come next.<\/p>\n\n\n\n
Big Profit Jump:<\/strong> Full-Year Growth:<\/strong> Improving Margins:<\/strong> Several key drivers boosted performance:<\/p>\n\n\n\n Each of these companies is expected to pay dividends<\/strong>, rewarding shareholders for sticking around through a tough cycle.<\/p>\n\n\n\n The outlook for the new fiscal year looks bright:<\/p>\n\n\n\n \u2705 Lower interest rates<\/strong> may boost car loans even further FY25 marked a strong comeback<\/strong> for Pakistan\u2019s auto sector. Sales were strong, costs were under control, and margins improved across the board.<\/p>\n\n\n\n As we move into FY26, investors and carmakers will keep a close eye on:<\/p>\n\n\n\n If these factors stay favorable, the rally in auto stocks may still have room to run.<\/p>\n\n\n\n Source: Foundation Securities <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Pakistan\u2019s car industry is expected to wrap up the year (FY25) on a high. Despite rising costs and currency pressure, most automakers are likely to post healthy profits for the last quarter (April\u2013June 2025). Let\u2019s take a look at what\u2019s fueling this rebound, and what might come next.<\/p>\n","protected":false},"author":9252,"featured_media":7499,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[153,48],"tags":[397,319,170,84,63],"class_list":["post-10177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-news","tag-auto","tag-auto-sector","tag-hcar","tag-indu","tag-sazew"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/02\/auto-sector-2-1140x445.jpg",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/02\/auto-sector-2-463x348.jpg",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/02\/auto-sector-2-300x188.jpg",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/02\/auto-sector-2.jpg",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=10177"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10177\/revisions"}],"predecessor-version":[{"id":10178,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10177\/revisions\/10178"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/7499"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=10177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=10177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=10177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Auto companies are forecast to earn Rs13 billion in 4QFY25<\/strong>, which is:<\/p>\n\n\n\n\n
For the full year, the sector is expected to post Rs44.9 billion<\/strong> in total profit, up 77%<\/strong> compared to FY24.<\/p>\n\n\n\n
Gross margins (how much money companies keep after production costs) improved to 17.5%<\/strong> from 14.7%<\/strong> last year.<\/p>\n\n\n\nWhy the strong comeback?<\/h2>\n\n\n\n
\n
Top performers this year<\/h2>\n\n\n\n
\n
What to expect in FY26?<\/h2>\n\n\n\n
\u2705 Government support<\/strong> for electric and hybrid vehicles (EVs) could spark fresh demand
\u2705 Car financing schemes<\/strong> and better access to credit will help
PKR depreciation<\/strong> remains the biggest risk, it can hurt profit margins by raising import cost<\/p>\n\n\n\n\n