IMC CEO optimistic about auto industry's outlook

Ali Asghar Jamali, Chief Executive Officer Indus Motor Company (IMC) has said that although the slowdown in the auto sector has resulted in almost 60 percent drop in sales, yet the outlook for the coming quarter seems promising.

"Last 5 months were very tough due to rupee depreciation; reduction in car financing, increase in Federal Excise Duty (FED) and higher input costs but we are witnessing signs of improvement and, for this reason, Non Production Days (NDPs) planned in November were cancelled," he added.

He said that the auto industry appreciates the government's efforts to expand the tax net and documentation. "But there should be a way leading to a win-win situation. This means there should be no harm to the industry and the people should be encouraged to become filers," Jamali said.

"More than 50 percent of sales were coming from non-filers previously, which has been impacted lately, he said. He said the top contributors challenging the industry include rupee depreciation, increase in duties, and decrease in demand owing to lower purchasing power.

He added that the road to revival of the auto industry is to stick to the auto policy so that the auto sector can do its best to help the national economy. "Ad hoc decisions create unpredictability and uncertainty which is bad for the industry and investments," reasoned Jamali.

Jamali said that 'Make in Pakistan' approach is needed to boost the economy and the auto sector can play a pivotal role in this regard. "The government has shown its commitment to promoting 'Make in Pakistan.' In the last meeting with the Engineering Development Board (EDB), focusing on production of electric vehicles in Pakistan rather than promoting their imports was discussed," said Jamali.

He said that the policy on electric vehicle should include import of EV and HEV specific parts only at concessionary duties so manufacturing is encouraged instead of allowing duty-free imports of EV. The government's support is required to promote CKD operation and discourage CBU imports.

Commenting on the recent news allowing expats to import duty-free 3000cc hybrid cars, he said that government should incentivize them to buy locally made cars duty-free.-PR