1QFY27: Auto sector profits seen falling 35pc QoQ
KARACHI: Pakistan’s listed automobile sector is expected to post combined earnings of Rs12.6 billion in 1QFY27, down 35 percent quarter-on-quarter, as vehicle sales volumes declined 16 percent sequentially amid uncertainty over the auto policy and delayed clarity on general sales tax (GST) on hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs), according to a research…
Pakistan's auto sector is forecasted to see a 35% decline in profits for the first quarter of fiscal year 2027, with combined earnings expected to be Rs12.6 billion, according to a research report. This decrease is primarily due to a 16% drop in vehicle sales volumes, which fell to 26,688 units compared to the previous quarter. Vehicle sales volumes are anticipated to increase by 39% year-on-year, reaching Rs179 billion, although they are projected to decline by 10% quarter-on-quarter.
The research firm attributes the decline in earnings to uncertainty surrounding the auto policy and delayed clarity on GST on HEVs and PHEVs. Net sales are expected to rise 39% year-on-year, but overall, the sector's earnings are likely to contract further.
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