In Jan 2005 when I went to showroom to get my Xli, I did not believe it that there was remote control with the cassette/radio player and rpm meter. These two features were not there when I booked. I asked the sales guy how come there was rpm meter in Xli and he said that the old meters stock finished and now the new stock was coming with rpm meter. So it is not Indus that changes the thing for the love of customers. As long as it gets certain parts, engine which is not manufactured in Pakistan and it can source cheap from any part of the world, they will not change, but when engine stock of 1ZZ-FE is finished, they look for the closest cheapest alternative and the change occurs. Plus it makes sense that duties on a 1.6 litre (1599cc) brings the duties down drastically and help IMC maintain prices to their advantage.
I was laughing after reading comments posted here that Indus was suffering because of automatic city that is why they brought 1.6 Altis. Many people have tried to make their wishes a news and harped on heresy. Do not post your desire as facts, post them as just desire guys.
Go and check the PAMA website and you will come to know that there is no competition between Indus or Atlas. Both are enjoying and reaping the fruits of a controlled and overly protected market.