Indus Motor considering double-shift operations to produce 76,000 units in 3-6 months

Indus Motor Company, the assembler of Toyota vehicles in Pakistan, announced on Thursday its plans to move to double-shift operations within the next three to six months, subject to increased demand.

Currently running a single shift, the company’s total production capacity stands at 76,000 units, expandable to 90,000 with overtime. Single-shift operations produce between 38,000 and 45,000 units with overtime.

Indus Motor's management highlighted a 41% surge in Pakistan’s automotive market—spanning both new and used cars—fueled largely by completely knocked down (CKD) units.

Toyota recorded a 74% rise in sales volumes, with deliveries increasing from 7,201 units in the first half of FY24 to 12,541 in the first half of FY25.

In the imported car segment, 17,170 units arrived during the first half of FY25, with total imports projected to exceed the 38,561 units recorded in FY24, according to a report by Topline Securities.

Management attributed the market recovery to improved consumer confidence, lower interest rates, and enhanced cash flow, adding that they anticipate strong growth in the months ahead.

Pakistan’s broader economic recovery, buoyed by the International Monetary Fund program and reforms, is also a contributing factor.

However, the auto sector seeks policy support through reduced CKD taxation, eased financing terms, and export incentives. While lower duties and interest rates may spur demand, the long-term outlook hinges on broader economic conditions.

The company reported robust gross margins of 13.8% during the first half of FY25, driven by cost efficiency measures, a high degree of localization, and the adoption of solar energy. A stable exchange rate further bolstered profitability, according to an analyst from Arif Habib Limited.

Regarding FY26 export targets, Indus Motor clarified that while these goals were initially voluntary, they have now become mandatory following the issuance of an SRO—a challenge that many firms have struggled to meet.

When questioned about potential price reductions for the Toyota Hilux in response to the launch of JAC, the company confirmed no changes were planned. Among Yaris variants, the 1.3L CVT remained the best-seller. Localization rates for the Corolla, Yaris, and Cross models ranged from 60% to 65%, while IMVs achieved 40% to 45%.