Honda’s car sales up 57% in Pakistan in 2026

For Honda Atlas Cars Pakistan, the year ended March 31, 2026, looked like the long-awaited turn in the cycle. After several miserable years in which Pakistan’s car assemblers were battered by import restrictions, a collapsing rupee, record-high interest rates and customers who simply stopped walking into showrooms, Honda’s Pakistani subsidiary reported a 57% increase in annual sales, to Rs 122.3 billion from Rs 78.1 billion a year earlier. Profit after tax rose by a more modest 19%, to Rs3.23 billion, with earnings per share of Rs 22.64. The distinction matters: this was not a year in which margins exploded. It was a year in which the top line came back.

That makes the results revealing. Honda Atlas did not post a dazzling profit number because cars suddenly became cheaper to build. Quite the opposite. Its cost of goods sold rose 58%, slightly faster than revenue, while gross margins narrowed to 7.8% from 8.5% for the year. The company’s gross profit still rose 42%, to Rs9.48 billion, but that was mainly because it sold more expensive metal in greater quantities, not because each car was vastly more lucrative. Operating expenses rose 38%, finance costs nearly doubled, and other income more than doubled, cushioning the effect on the bottom line.