Used cars im­ports dam­ag­ing lo­cal in­dus­try

Enterprise - - News -

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.”

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