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LAHORE: Chief Executive Indus Motor Company (IMC), Ali Asghar Jamali has lamented that total used car imports have crossed the production numbers of some Original Equipment Manufacturers (OEMs) in the country.

“This situation at the time of import control measures is beyond understanding,” he said, adding: “Day by day increase in the imports of used cars has been severely impacting the already affected local auto industry.”

He revealed that more than 6,000 used cars were imported in the financial year 2022-23, with more than 1,200 units being imported only in May and June this year. He added that continuous huge import of used cars is adding to the woes of the local auto industry, as this issue is also nullifying the plausible localization achieved by local auto industry.

“In the presence of minimum foreign exchange reserves held by SBP, the government should refrain from permitting the policy of importing of used cars and instead support the local policy against auto industry, which is producing cars locally,” he suggested.

He mentioned that industrial growth of auto industry, is essentially linked with a properly designed planned import policy, and it can never be achieved in the presence of imports, while parallel imports of used cars against local manufactured cars cannot go together in tandem with locally manufactured vehicles.

Yet, added Jamali, the IMC has been continuously investing and despite registering a 55% reduction in production, they have not gone for any layoffs. He added that despite uncertainty regarding supply-side recovery, they have not opted for any layoffs, which shows their commitment to the country and the wellbeing of their employees.

He said, “The local auto industry has been facing the issue of LCs for quite some time, making it difficult for the industry to maintain its sales.”

The IMC faced a 58% decline in its volumetric sales from January to June 2023, he added.

Talking about Hybrid Electric Vehicles, the IMC CEO said that Pakistan is one the worst victims of climate change as according to Global Carbon Budget 2022 annual CO2 emissions in Pakistan stood at 229.51 million tons in 2021, which was 9% higher than 210.38 million tons in 2020.

“Therefore, HEVs are the most sustainable solution to the country’s economic problems, as it would help achieve macroeconomic goals, employment generation, exports boost, and imports reduction as well,” he opined.

He said that HEVs are the most logical option to reduce carbon dioxide emission in fossil fuel reliant countries like Pakistan and India, which have 62% and 75% share of fossil fuels in their energy mix respectively.

“Toyota has made an investment of $ 100 million to produce HEV vehicles in Pakistan and Corolla Cross, Pakistan’s first locally manufactured HEV SUV, is to be launched soon,” he highlighted. He said that the adoption of hybrid technology will also result in the reduction of import bill, as 30000 units of HEVs will save around $ 37 million per annum.

Copyright Business Recorder, 2023

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Ibrar khan Sep 07, 2023 08:55am
This is good for Pakistan industry in automobile sector
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ARBAB Sep 07, 2023 09:32am
Focus on the quality & price of locally manufacture vehicle instead of ban on import
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Wajahat Haleem Sep 07, 2023 10:10am
Local Auto Manufacturers producing stone age vehicles with zero safety, IMC producing models which doesn't meet Basic Standard requirements with Skyrocketing Cost. That's why for last 20 years they have failed to export a single vehicle. Please at least be Ethical.
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Aamer Mian Sep 07, 2023 10:13am
Local car production is another mafia very much like the IPP's. Extremely poor quality and high price. Improve yourself and people will stop buying imported vehicles
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Mohsin Sep 07, 2023 10:16am
Will IMC CEO also shed some light on the import policy of used cars i:e gift scheme and personal baggage scheme ? Will he not mention that all the 6000 imported used cars were brought to Pakistan by Pakistanis living and working abroad ? Will he not acknowledge that custom duties and taxes for importing cars through these schemes were also sent to Pakistan through proper banking channels by the same Pakistanis living abroad ? Will he not account for the volume of these remittances sent solely for importing cars ? He should be ashamed of the poor quality, expensive cars the local industry produces. People prefer imported cars on local assembled cars due to better fuel efficiency and safety features. Plus these imported cars can only be imported by ex-pakistanis after sending the custom duties to Pakistan through proper backing channels and its not like what IMC CEO claims that we are losing foreign exchange for the used imported cars through these two schemes.
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Mohsin Sep 07, 2023 10:19am
Will IMC CEO also shed some light on the import policy of used cars i:e gift scheme and personal baggage scheme ? Will he not mention that all the 6000 imported used cars were brought to Pakistan by Pakistanis living and working abroad ? Will he not acknowledge that custom duties and taxes for importing cars through these schemes were also sent to Pakistan through proper banking channels by the same Pakistanis living abroad ? Will he not account for the volume of these remittances sent solely for importing cars ? He should be ashamed of the poor quality, expensive cars the local industry produces. People prefer imported cars on local assembled cars due to better fuel efficiency and safety features. Plus these imported cars can only be imported by ex-pakistanis after sending the custom duties to Pakistan through proper backing channels and its not like what IMC CEO claims that we are losing foreign exchange for the used imported cars through these two schemes.
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Mohsin Sep 07, 2023 10:22am
The amount for importing CKD kits for local assembled cars is a huge loss to Pakistan's exchange reserves. Local auto companies should localize the CKD kits manufacturing rather than their import, as promised by them previously, to lower the prices of these substandard and expensive vehicles Government should force this mafia for the localization of these parts. Government should also take into account the previous year's remittances figures before shutting down the imports of used cars again. As it will result in the loss of remittances as it did the last year.
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Ibrar khan Sep 07, 2023 10:35am
This is good for Pakistan industry in automobile sector
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Malik Waqar ul Hassan Jalil Sep 07, 2023 11:07am
Well all those 6000 units were imported under law and duties paid by Pakistani folks, what is his problem, these so called OEM are used to of manipulating system, selling cheap stuff at much higher prices. Can't compete with latest technology, can't bring their game up. Wake up world has changed, it is survival of fittest. Knock them out with your quality and affordability. Get off that old track.
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Aamir Latif Sep 07, 2023 12:34pm
IMC chief should instead talk about deletion failure by IMC in last 25 years as their assembling car business is forex drainer too.. Deletion is still 55%+-..All major car producers in India working as per Made in India"plan... Prices sky rocketing and quality hopeless.. Instead Pakistan should import same models from India, will be cheaper still...Further, Japanese assemblers had in collusion manage to keep duties more on EU cars to keep them expensive. Current lot much more efficient and reliable... GoP shluld revise their policy for EU cars for real competition and encourage that works with definitive plan to acheive 90%+ deletion in a certain time...
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Cool Sep 07, 2023 03:18pm
Everything in local cars is imported. Chassis, gearbox and engine. What else do they want to whine about?
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Gillian Sep 07, 2023 03:36pm
IMC jackheads lecturing about local poor made cars
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Aamir Shahzad Sep 07, 2023 07:25pm
So called local manufacturers, import 95% of the parts. They are just assemblers.
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KU Sep 07, 2023 07:45pm
At least they are cheaper than locally manufactured cars, with quality safety standards and durability and good standard tires, and much more. Besides, customers won't have to wait desperately in line or pay earnest money etc.
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Kifayat Khan Sep 07, 2023 09:35pm
It's Good you are facing bad times....atleast they are offering more options for the same price...
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Janbaaz Sep 07, 2023 09:45pm
Oh, really? Would Mr. Jamali care to explain why is IMC still not using locally-made oil and air filters for locally assembled Toyota vehicles? A Corolla's oil filter costs Rs. 3200, air filter for Rs. 7500 and AC/cabin filter for Rs. 6500, which are all imported from Thailand. These are exorbitant rates. And then people like Mr. Jamali complain that imported vehicles are putting strain on the country's economy.
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Janbaaz Sep 07, 2023 09:53pm
Pakistan doesn't need hybrid 'suvs'. Instead IMC should invest in small HEV vehicles for the common man. The figures that Mr. Jamali is citing are misleading. This Corolla Cross will cater to the miniscule 1% elite segment as it will fall within the 1 to 2 crore price bracket. Plus, no technology will be transferred and all parts will be imported thus putting a further strain on the foreign exchange. Manufacturing and selling of SUVs, luxury vehicles with down-sized turbo engines should be banned in the country. IMC would do well to initiate research in refurbishing and converting old (not older than 20 years) Toyota models into electric vehicles as newer cars have become more expensive globally over the past few years. But no! Mr. Jamali's Japanese masters wouldn't allow that to happen.
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FAHAD ARSLAN Sep 08, 2023 01:58am
EXCELLENT NEWS..... IMPORT OF QUALITY VEHICLES SHOULD BE ALLOWED TO MAXIMUM EXTENT.....IMC IS A PART OF MAFIA which are increasing prices day by day.....your sales will fall even furthur drastically in the next 6 months !!
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Salim Sep 08, 2023 09:50am
I would suggest to the IMC CEO not to stop crying and manufacture better vehicles oh! My mistake, not manufacture but assemble, as all these so called car manufacturers are assemblers. You people gives us lowest grade products and constantly whimpering on competition. A used imported car is 100 times better than the new local car.
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Muhammad Owais (FCA) Sep 08, 2023 10:13am
Sir your concern is same like our politicians, all countries give equal opportunity for comparison. Your vehicles are over priced. When dollar got a peak u guys add 500k into one unit, shameful. You just want to fulfil your desires. Right now buying vehicle is a dream for middle class. Stupid u
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Nasir Shabir Sep 08, 2023 10:27am
Self Accountability is core issue. IMC Toyota has not done 3 thing 1. 100% Localization due in 2006 after setting plant in 1996. Stilly relying heavily on imports rather building internal capacity 2. Poor Quality and basic productions. Why people choose same car 5 years old imported compared to local brand new. Poor Quality & feature less old generations production. 3. Priority Quota for Elites / decision makers and half year or more waiting time for commons. Resulting ON money earning for investors and cost for retail user.
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Adnan Aziz Sep 08, 2023 08:51pm
Do not worry. The Government listens only to the mafias and pressure groups. Local car manufacturers fall in this category. Look Easy where price of locally assembled cars are half of the price here. Why? How can you you expect to spend millions on automobiles made of tin and plastic?
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Sajid Brohi Sep 08, 2023 09:43pm
سوزوکی کی مہنگی ٹین کی چادر والی کار کی بجائے ہم استمال شدہ امپورٹڈ کار کو ترجیح دیتے ہیں
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Arbab Bilal Ahmad Sep 09, 2023 02:02am
Sub Standard Cars by Indus Motors with exorbitant price tags. What did you expect. I would prefer to buy 10 years imported used car.
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Xab Sep 09, 2023 04:44am
When you give tin boxes after getting hefty amount then imported cars are good because of features and safety point of view. I am glad the Japanese import dilemma is on the rise.
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fahad Sep 09, 2023 08:56am
I think IMC and other local assembler first focus on their quality and variety of their vehicle to be a good market player, At initial stage they get license to get assembling their cars with 50% of components should be from local market, and in the agreement its mentioned that they will produce the other components in Pakistan at least 70%, however till date not a single assembler developed to produce the engine by themself. 80% of components are importing and the local manufacturer wows that imported cars impacted much, these components we send lots of foreign exchange and if we produce by ourself then we dont have to face these challanges, do they think Corolla worth 8 million, civic 10 million and alto 3.5 million, fortune 20 million, the Vego dala we call its status symbol cost around 15million. These cars mafia gave millions of Rs of bribe to our curropted Minister to pass their own law. You can see and learn from our neighbor country, how their auto industry grow well.
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Sohail Rana Sep 09, 2023 10:19am
@Mohsin, yes you are right .. these local cars are still being sold with on money .. I recently purchased a Corolla Altis for 6.6 million whereas the invoice price was 5.9 .. can Mr. Jamali shed some light on this black marketing of his product ..I visited all official Toyota show rooms of Islamabad and the on money was there .. Toyota were selling for 6.9 million where as the invoice price was 5.9.. a price no one is happy about but Toyota Pakistan is creating this opportunity for black marketing.
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