Toyota Indus Motor likely to post over Rs24bn profit as auto sales rebound

ISLAMABAD: After a tough couple of years, Pakistan’s auto industry is shifting into a higher gear. New data suggests a promising turnaround in FY25, with several key automakers reporting sharp jumps in earnings, thanks to a mix of rising sales, improved margins, and a more accommodating interest rate environment.

While the recovery isn’t evenly spread across the board, players like Honda Atlas, Indus Motor Company (Toyota), and Sazgar Engineering are clearly benefitting from a market that’s beginning to stabilise. 

Indus Motor’s big rebound

Toyota’s local partner, Indus Motor Company, is also enjoying a strong comeback. FY25 earnings are forecasted at Rs24.42 billion, up 62 per cent from last year when supply chain issues and plant shutdowns dented performance. 

Sales momentum is clearly back. In the final quarter alone, Indus sold 11,775 units, a 173 per cent jump from a year ago. With profits for the quarter expected at Rs7.87 billion, the company is likely to announce a final cash dividend of Rs60.1 per share, pushing the full-year payout to Rs186. 

Honda Atlas

Honda Atlas Cars is expected to post a major leap in profits for the first quarter of MY26, clocking in at Rs1.11 billion, more than five times higher than the same period last year. The key driver? A massive 5.5x spike in vehicle sales, which reached 5,682 units. 

Toyota, Honda earnings face headwinds from Yen strength, US auto tariffs

Even though revenue may dip slightly compared to the previous quarter, gross margins have improved to 10.1 per cent, signalling tighter control over costs and better pricing strategies. Add in a 75 per cent drop in finance costs due to lower borrowing needs, and it’s clear Honda has found its rhythm. 

The company also has big plans ahead. It’s officially confirmed that Hybrid Electric Vehicles (HEVs) are in the pipeline. Earlier this year, Honda even exported 38 locally built City 1.2L units to Japan—a first for Pakistan and a sign that global ambitions are firmly on the table. 

Sazgar

Sazgar Engineering Works, known for its Haval SUVs and three-wheelers, is poised to double its bottom line. Analysts expect full-year profits to hit Rs17.61 billion, a 122 per cent increase from FY24. 

The company’s latest sales figures tell the story: in June, Sazgar moved 1,349 four-wheelers and 2,435 three-wheelers—up 47 per cent and 31 per cent month-over-month, respectively. The only downside? Other income could take a hit from declining interest rates, but overall, the outlook remains bullish. 

The expected full-year dividend stands at Rs44 per share, with Rs12 likely to be announced for the most recent quarter.

Read next: PSX extends gains with KSE-100 up over 1,600 points by midday