KARACHI: Amid dwindling sales and the higher influx of used cars, Indus Motor Company (IMC) will export 50 locally assembled units of the Toyota Revo, Fortuner and Toyota Corolla Cross to Scandinavian countries. Additionally, there are plans to export human resources to Japan.
IMC Chief Executive Officer Ali Asghar Jamali informed the media on Wednesday that the first batch would be shipped on July 25. He expected foreign exchange earnings of $1.5 million through this shipment. IMC is exporting these units at 15-20 per cent above the cost due to high tariffs in exporting countries, he claimed.
He added that IMC has also exported around 150 workers to Japan, who will earn between $2 and $2.5m. “We are targeting 100 more workers in the next 10 months which would double the earning,” he added.
Jamali said assemblers of various Japanese and Chinese vehicles will incur losses, but have asked the government to further assist the local industries by initiating free trade agreements (FTA) with potential countries, especially African countries, with the consultation of industry stakeholders.
He said export potential could be enhanced with the localisation of raw materials and economies of scale, which requires government support, a conducive environment, and consistent policies.
Jamali said Toyota Motor Corporation Japan, has praised the efficiency and performance of Pakistani workers by declaring them the best among Asia Pacific countries.
Prime Minister Shehbaz Sharif, in a recent meeting with the auto assemblers, agreed to support the local industry. The PM was informed that local manufacturers would continue to strive for increased localisation of parts, but further government support was requested to encourage and establish small/ medium industries in the country to provide parts’ raw materials.
He urged the government to curb the influx of imported vehicles by rationalising taxes and taking corrective measures to revive local sales, protect the interests of local car manufacturers, and ensure the sustainability of numerous livelihoods within the country.
He added that increasing duties (including indiscriminately implementing regulatory duty on all types of imported used cars instead of selective drive train) and taxes in the upcoming budget would provide an opportunity to regulate the excessive import of used cars.
This would help the local auto industry benefit from a slightly better business climate, stable exchange rate parity, and a foreseeable reduction in interest rates.
He said used car imports swelled to 30,679 units during 10MFY24 versus 4,701 units in the same period last fiscal year.
Published in Dawn, June 6th, 2024
