Locally-produced cars: IMC CE lists factors behind high prices

ISLAMABAD: Indus Motor Company (IMC) Chief Executive Ali Asghar Jamali has said issues such as high taxation, inflation, used car imports and currency instability have resulted in higher prices for locally-produced cars.

“There is need for a planned import policy to support the growth of the local auto industry because heavy import of used cars is impacting the industry,” said Jamali while talking to a group of journalists.

He said over 6,500 used cars were imported in the financial year 2022-23 alone while more than 7,500 units have already been imported in the first three months of the current fiscal year. “This issue of used car imports not only nullifies the localization achieved by the local auto industry but also hampers the potential for further localization in Pakistan,” reasoned Jamali.

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However, he appreciated recent relaxations in the opening of Letters of Credit (LCs) for imports that helped local industry in procuring raw materials.

“The Original Equipment Manufacturers (OEMs) witnessed improvement in sales of passenger cars and light commercial vehicles in September 2023 due to these relaxations, although there was still a 26% decline in sales on a year-on-year basis,” said Jamali.

In light of the current challenges and the need for a sustainable future, Jamali on the occasion announced that the upcoming launch of Pakistan’s first locally made Hybrid C SUV.

“Pakistan, despite being one of the lowest contributors to climate change, is still facing severe impacts. Our locally made Hybrid Electric Vehicles (HEVs) will be a conscious effort to further reduce emissions and achieve the UN’s Sustainable Development goals.

“HEVs are not only a more sustainable solution for our country’s environmental problems, but they will also have positive economic implications, boosting employment and export opportunities,” said Jamali.

Copyright Business Recorder, 2023