KARACHI: Indus Motor Company (INDU) held its 37th Annual General Meeting on Sept. 28, 2026, following the release of its fiscal year 2026 results, with management addressing electric vehicle strategy, margin pressure and regulatory concerns.
On the company’s planned EV and PHEV lineup, management reaffirmed that Toyota offers models across all categories with the latest technology globally. Indus Motor said it will align its launch strategy with the finalized auto policy once the government approves, ratifies and announces it.
The company reported gross margins of 10.3% in the fourth quarter of FY26, down from 13.3% in the same period a year earlier and 15.5% in the third quarter of FY26. Management attributed the decline to strategic pricing decisions and higher dealer incentives to support marketing efforts.
Indus Motor envisions capital expenditure of 4 billion to 5 billion rupees ($14.3 million to $17.9 million) in FY27 to further increase localization of parts and components.
Management said the company raised inventory levels to mitigate shipment delays amid the ongoing geopolitical situation and to avoid production disruptions.
Management noted that Hilux sales declined in FY26 because of reduced government purchasing during the ongoing war. It also said certain competitors are mis-declaring their products under the range-extended electric vehicle category to benefit from a lower general sales tax. Management expects the issue to be resolved soon, as the matter is under review by regulators at the Federal Board of Revenue, which would provide a level playing field for the company.
