KARACHI: Indus Motor profit car sales quarter 2026 results show a strong recovery in Pakistan’s car market, with the country’s largest Toyota assembler selling far more cars and earning far more profit than a year ago. Indus Motor Company reported growth in sales and profitability for the quarter ended 30 September 2026, supported by recovering demand, a strong product range and careful cost control. The results are the clearest sign yet that buyers are returning to showrooms after a long slow period for the auto industry.
The Indus Motor 13380 units September quarter figure is 34 percent higher than the same quarter last year, when the company sold far fewer vehicles. Indus Motor sold 13,380 units in the three months to September, and the growth came from its Corolla, Yaris and Cross models, which buyers continue to choose in large numbers. The company said demand was recovering, and it expects demand for locally made vehicles to improve gradually during the rest of the financial year.
Indus Motor profit after tax Rs7.384 billion was reported for the quarter, and that figure shows how much of the extra sales turned into earnings. Indus Motor net sales revenue Rs74.015 billion rose with the higher volumes, and the company managed its costs well enough to turn the extra revenue into a healthy profit. For a company that assembles cars in Pakistan, a quarter like this one matters, because it shows that the factory, the dealers and the buyers are all moving in the same direction again.
PAMA passenger cars light commercial vehicles 50480 units were sold across the industry in the quarter, according to the Pakistan Automotive Manufacturers Association, and that total was about 19.4 percent higher than a year ago. Passenger car sales alone rose 43 percent to 41,872 units in the July to September quarter, though September itself was weak, with sales falling 20 percent from August. The mixed picture shows that the recovery is real but uneven, and that buyers are still careful about when they spend.
The wider market also shows how much room the industry still has to grow. The sector continues to operate at an estimated 45 percent of its installed production capacity, which means factories could build more than twice as many cars as they do today if demand allowed. Two-wheeler sales hit a record 202,502 units in September, up 27 percent from a year ago, which shows that cheaper transport is also selling fast. The car market is recovering, but it is still far from using the capacity that manufacturers have already built.
Indus Motor chief executive Ali Asghar Jamali welcomed the recovery, but he also warned about two problems that could hold the industry back. The first is the misuse of the Gift Scheme, a route meant for overseas Pakistanis to bring in cars, which he said was being used to import used vehicles in large numbers and undercut local makers. The second is the absence of a clear long-term auto policy, which makes it hard for companies to plan investment in new models and new plants.
The Gift Scheme used car imports Pakistan problem has grown into a real worry for local assemblers, because used cars imported through the scheme compete directly with new locally made cars. Indus Motor called for stronger enforcement of import rules, a consistent auto policy and measures to support localisation and exports. The company argued that without clear rules, investment in local manufacturing would suffer, and the country would keep spending foreign exchange on imported cars instead of building them at home.
The tax treatment of cars is another source of uncertainty for buyers and makers alike. Before the last budget, locally assembled hybrid vehicles enjoyed concessional sales tax rates of about 8.5 to 12.75 percent, but those concessions expired in June and rates rose to 25 percent. The government later cut the rate to 18 percent for qualifying locally made hybrids, and the market is now waiting for the new auto policy to settle the tax treatment of petrol, hybrid, plug-in hybrid and electric vehicles once and for all.
Readers should keep two points in mind about this story. First, the figures cover the companies that report to PAMA, and several big names, including Kia, Changan, BYD, MG and Omoda, do not report their sales to the association, so the true size of the market is larger than the official total. Second, the company itself warns that rising oil prices, operating costs and exchange rate swings remain risks, so a good quarter is a welcome sign, but it is not yet proof that the recovery will last.
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