Karachi: Indus Motor Company (INDU) reported a significant increase in sales during its recent analyst briefing, highlighting a 33% year-on-year growth in volumetric sales to 45,035 units for the fiscal year 2026. The quarter ending in the first quarter of fiscal year 2027 also showed a similar upward trend, with a 34% increase to 13,380 units. This growth was attributed to a balanced sales mix, with a 60:40 ratio between the Yaris and Corolla models, while the Fortuner and Hilux maintained a 50:50 split.

According to JS Global, the briefing revealed a decline in used car imports by 12% in FY26 and 56% in the first quarter of FY27, contrasting with a substantial rise in new CBU imports, which increased 3.9 times year-on-year in FY26 and 2.8 times in the first quarter of FY27. New CKD imports also saw a notable rise. Despite these gains, the company expressed concerns over potential risks, including high oil prices, geopolitical tensions, and fluctuating interest rates, which might impact future sales.

Indus Motor urged the government to standardize duties and taxes across vehicle categories to address disparities. The company also advocated for easing auto financing conditions by increasing the financing limit and extending the tenure. The new auto policy, still awaiting government approval, was discussed as a potential catalyst for local parts manufacturing. Management noted that uncertainty surrounding the policy could lead to a decline in auto sales as consumers remain cautious.

The company pointed out that Chinese automakers have an advantage through economies of scale and vertical integration, making CBU imports more feasible. In contrast, Indus Motor is committed to localization by supporting local vendors, which they argue is crucial for sustaining domestic manufacturing.

Indus Motor's fiscal year 2026 profit after tax increased by 11% year-on-year, with expectations of continued financial strength reflected in their FY27 earnings projections. The company maintains a positive outlook with a BUY recommendation, supported by favorable price-to-earnings and dividend yield metrics.