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Aftab Maken
ISLAMABAD: Indus Motor Company is facing declining profitability and rising market pressure during the first nine months of fiscal year 2026, with its net profit margin slipping to 10%.
Financial data shows the margin stood at 11% in the same period last year, indicating a gradual erosion in profitability. Although the company’s gross margin has remained stable at around 15%, it is now considered lower compared to competitors such as Suzuki and Sazgar Engineering.
During the third quarter, Indus Motor sold 12,750 units, reflecting a 40% year-on-year increase. However, this recovery comes after a sharp decline in demand during fiscal years 2023 and 2024, and sales remain well below previous peak levels when the company maintained long waiting lists and a dominant market position.
Market analysts say the company is no longer competing only with traditional assemblers but also with aggressive new entrants offering discounts, advanced features, and strong marketing campaigns. While Toyota’s brand loyalty once gave Indus Motor a clear advantage, Pakistani consumers are increasingly shifting towards brands such as Haval, Hyundai, Kia, MG, and Changan.
This trend is particularly evident in the SUV segment. Sazgar Engineering’s Haval brand sold 5,363 units in the third quarter of FY2026, significantly surpassing the combined sales of Indus Motor’s Fortuner and other IMV models, despite differences in price segments.
Experts note that the company’s earlier strategy of raising prices during periods of currency depreciation and supply shortages is no longer effective. With improved inventory levels and increased competition, factors such as discounts, financing options, and modern features have become decisive, areas where Indus Motor appears to be lagging.
Despite maintaining a strong financial position and offering a dividend of Rs148 per share, the company’s market standing is weakening. Analysts believe that to retain its competitive edge, Indus Motor must introduce new products, adopt hybrid technologies, accelerate upgrade cycles, and strengthen its marketing strategy.
They warn that without timely strategic adjustments, intensifying competition could further erode Indus Motor’s market leadership and pose long-term challenges for the company.
