Likely output dip in Feb, Mar: Indus Motor offering full refund with interest to customers

KARACHI: Amid the current economic crisis, Indus Motor Company (IMC) is offering a full refund with interest to its customers due to a production dip expected in February and March.

With an eye on the future and a focus on sustainability, IMC is also determined to introduce the Hybrid Electric Vehicle (HEV) with the highest localization in the SUV category in Pakistan.

This comes as a beacon of hope in a challenging time, where the local auto industry is facing multiple hurdles and the prevailing economic conditions show little signs of improvement.

CEO Ali Asghar Jamali acknowledged the tough times for the local auto industry and stressed the importance of support from the government to overcome these challenges and propel the industry toward a brighter future.

Indus Motor to shut down plant for two weeks

He highlighted the ongoing restrictions on CKD kits as one of the major issues impacting the auto industry, causing manufacturers to only operate at 40-45% of their capacity.

The depreciation of the rupee, rising inflation, and tighter fiscal and monetary measures have also negatively impacted the auto industry, dampening consumer demand.

The CEO IMC also mentioned that the State Bank of Pakistan has replaced the quota system for auto manufacturers with a priority list that prioritizes essential imports, leaving little room for auto imports. The pending LC payments have resulted in significant financial losses.

Despite these challenges, IMC has pledged not to lay off any employees and is even offering interest-free loans to its suppliers. The CEO emphasized the critical role of government support in overcoming the obstacles facing the auto industry, including promoting political stability, improving trade relations with neighboring countries, and adopting daylight saving.

Copyright Business Recorder, 2023