Karachi: Indus Motor Company Limited has reported significant growth for the first quarter ending September 30, 2026, as outlined in its Directors' Report. The report, released on October 30, 2026, highlights a 34% rise in total sales of Completely Knocked Down (CKD) and Completely Built-up (CBU) units, reaching 13,380 units compared to the same period last year. Vehicle production also saw a notable increase of 39.2%, with 14,240 units produced compared to 10,230 units in the previous year.
The automobile sector in Pakistan has continued its recovery, fueled by improved macroeconomic conditions and lower auto-financing costs. According to data from the Pakistan Automotive Manufacturers Association (PAMA), sales of locally assembled Passenger Cars (PCs) and Light Commercial Vehicles (LCVs) grew by 19.4%, totaling approximately 50,480 units compared to 42,267 units last year. Despite this growth, the sector is operating at 45% of its installed production capacity.
The import of used cars rose exponentially by 420% to 5,897 units, compared to 1,132 units in the last quarter of FY2025-26. This surge persists despite the abolition of the Personal Baggage Scheme, raising concerns about the commercial misuse of the Gift Scheme. The government has imposed stricter regulations to mitigate such practices and support the domestic automotive industry.
For Indus Motor Company, net sales revenue increased to Rs. 74.015 billion from Rs. 61.738 billion in the previous year. Profits after tax improved to Rs. 7.384 billion, up from Rs. 6.719 billion last year. The growth in profitability is attributed to increased sales volumes, cost control measures, and a favorable exchange rate environment. Earnings Per Share (EPS) rose to Rs. 93.95 from Rs. 85.49, and the company declared a first interim cash dividend of Rs. 56 per share.
According to information available from the Pakistan Stock Exchange (PSX), the company's market share remains stable at around 17% in the domestic automotive sector. The company's success is largely driven by the sustained demand for models like Toyota Corolla and Yaris, alongside the Toyota Fortuner in the premium SUV segment.
Pakistan's economy has shown gradual recovery during the first quarter of FY 2026-27, with a current account deficit of USD 874 million. Inflation averaged 10.2%, influenced by rising international oil prices. The State Bank of Pakistan maintained its policy rate at 11.50%, while the fiscal deficit stood at 2.6% of GDP. The government projects GDP growth at 4% for the fiscal year, contingent on domestic and external factors.