Toyota Indus Says BYD Shark 6 is Impacting Hilux Sales

Toyota Indus held its corporate briefing today, during which the company discussed financial results and the operating outlook. 

Here are the key takeaways PakWheels has gathered from Topline Securities and Arif Habib Limited:

Pressure from the BYD Shark 6

While Fortuner volumes doubled year-on-year, the Hilux remained under pressure due to rising competition from Chinese models such as the BYD Shark 6 in urban areas, while rural demand remained stable.

Rural demand for the Hilux remained relatively stable.

Clarity on Fortuner’s Price Reduction 

The company addressed questions around the reduction in Fortuner prices, stating that the cut was driven by a combination of government tax reductions, which account for 60–70% of the reduction, and localization-led cost savings passed on to consumers. 

The company also clarified this was not a conventional discount but a structural cost change.

Toyota to Focus on Hybrids Before EVs

On EVs, Toyota said electrification is an inevitable global shift that will eventually reach Pakistan. The company believes that hybrids are more likely to gain early traction domestically before full EV adoption.

The company also indicated plans to introduce new models in short-, medium-, and long-term phases, with further launches expected once there is greater clarity on the National Electric Vehicle policy.

Localization of Corolla, Yaris, and Cross

Localization levels for the Corolla, Yaris, and Corolla Cross exceed 60%. 

Localization for the SUV and pick-up segment (Hilux and Fortuner) has climbed from 38% to over 41%. This improvement allowed Toyota to pass a 3% cost benefit directly to customers.

Toyota Reclaims Share Despite Chinese Rivalry

The company stated it holds more than 50% market share in most segments, except for the Corolla Cross, where its share is 25–30% due to multiple competitors. 

On overall market share, the company gained approximately 1% compared to the previous year, rejecting the view that its competitive position has weakened amid the growing presence of Chinese automakers. 

Management acknowledged that the company had lost market share previously but said consumers have been returning to the brand after evaluating alternatives.

Rs 1 Billion Investment for Localization Development

The company announced an additional Rs 1 billion localization investment, described as part of its long-term commitment to domestic industrial development.

This is in addition to approximately Rs 3 billion in previously approved localization investments.

Government Sales and Used Car Imports

Institutional sales, covering government and corporate customers, account for roughly 20% of total sales, split equally between the two categories.

In the used-imported car segment, 36,053 units were imported from July 2025 to March 2026.

However, imports fell sharply to 793 units in March 2026, attributed to disruptions from the US-Iran conflict.

For context, by the full year of 2025, used car imports had reached 42,122 units.

Regarding the used-car import policy, Toyota noted regulatory uncertainty and is currently awaiting a clear direction from the government.

Pricing Outlook and Policy Uncertainty

Toyota stated that current price reductions are time-bound and could be reversed if costs rise further, particularly depending on the outcome of the upcoming federal budget.

With the current Auto Policy expiring on June 30, 2026, the future remains uncertain. While renewal talks are underway, a final agreement on incentives has not yet been reached between the government and the industry.