Amid declining sales and an increase in the influx of used cars, Indus Motor Company (IMC) is set to export 50 locally assembled units of the Toyota Revo, Fortuner, and Toyota Corolla Cross to Scandinavian countries. Additionally, there are plans to export labor to Japan.
IMC Chief Executive Officer Ali Asghar Jamali informed the media on Wednesday that the first batch would be shipped on July 25, with an expected foreign exchange earning of $1.5 million from this shipment. Jamali noted that these units are being exported at 15-20 percent above cost due to high tariffs in the destination countries.
Jamali also mentioned that IMC has exported around 150 workers to Japan, who are expected to earn between $2 and $2.5 million. He aims to send an additional 100 workers over the next 10 months, potentially doubling the earnings.
Jamali acknowledged that assemblers of various Japanese and Chinese vehicles are facing losses but have urged the government to support local industries by negotiating free trade agreements (FTAs) with potential markets, particularly in Africa, with input from industry stakeholders.
He emphasized that export potential could be enhanced through the localization of raw materials and achieving economies of scale, which requires government support, a conducive environment, and consistent policies.
Jamali shared that Toyota Motor Corporation Japan has praised the efficiency and performance of Pakistani workers, declaring them the best among Asia Pacific countries.
In a recent meeting with auto assemblers, Prime Minister Shehbaz Sharif agreed to support the local industry. The PM was informed that local manufacturers would continue to strive for increased localization of parts but requested additional government support to encourage the establishment of small and medium industries to supply parts’ raw materials.
Jamali urged the government to curb the influx of imported vehicles by rationalizing taxes and implementing corrective measures to revive local sales, protect local car manufacturers, and ensure the sustainability of numerous livelihoods in the country.
He suggested that increasing duties and uniformly implementing regulatory duties on all types of imported used cars in the upcoming budget would help regulate the excessive import of used cars. This would enable the local auto industry to benefit from a better business climate, stable exchange rate parity, and a foreseeable reduction in interest rates.
Jamali noted that used car imports surged to 30,679 units during the first ten months of FY24, compared to 4,701 units in the same period last fiscal year.
