Used cars imports damaging local industry
The import of used cars in the country is largely damaging the local auto industry known as “mother of industries”, said Indus Motor Company Limited (IMC) Chairman Ali S Habib.
Talking about challenges faced by the industry, he said, “Constant policy is vital for growth of auto industry which is one of the most documented sectors of the economy and amongst the highest taxpayers in the country.”
While ensuring level playing field, the government should also come up with a comprehensive auto policy for at least 15 years and minimise sales tax rate at rational level, he said.
“Many countries have stabilised their economies by strengthening their manufacturing and auto sectors, while taking measures including restrictions on import of used cars and have used tariff and non-tariff barriers to ensure domestic production is not damaged irretrievably. No auto manufacturing country permits liberal imports of used cars as Pakistan and here our government would do well to tighten this policy if the industry is to flourish.”
“We are fortunate to have Toyota, the number one automaker globally to be our joint venture partner. Over the years this partnership has transformed Indus Motor to become a formidable player in the domestic auto industry creating thousands of jobs, enabling transfer of technology like pioneering robotics and high tech parts manufacturing and above all the human skills development through application of Toyota Production System and exposure of hundreds of our people to Toyota plants overseas,” he added.
Shedding light on completing 25 years of IMC, he said, “From a humble beginning in 1989 with production capacity of 20 cars a day and a workforce of 500 employees, we have today grown into a company of over 2,700 employees and production capacity of 230 cars a day. Our daily sourcing of parts from local manufacturers exceeds Rs 110 million and the contribution to exchequer since inception exceeds Rs 224 billion.”