Daily Times

ISLAMABAD: Indus Motor Company Chief Executive Officer (CEO) Ali Jamali Saturday said that his company would increase car prices in coming days in the wake of rupee depreciation, regulatory duty on raw material and hike in the prices of fuel, steel and copper.

“It is getting difficult to hold the prices further,” he said while addressing the annual Industry Workshop, which was held in collaboration of Pakistan of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM).

This year’s primary theme was ‘Potential of Pakistan’s Auto Industry’ keeping in view the country’s future economic outlook amidst all the infrastructure/capital investments being made under CPEC together with improvement in the situation of law and order.

Jamali said that Pakistan was all set to achieve close to 6% economic growth this year with per capita income expected to reach over $ 1700 per annum- thanks to good governance and somewhat stable pro-growth policies pursued by government. “Subject to the continuity in good policies along with realisation of the fruits from some of the capital investments, Pakistan was all set to be amongst the top 20 economies of the world by 2030.”

He added, “Growing economy and per capita income would eventually increase the demand for automobiles, which was set to cross the 500,000 mark by 2022. The industry was also gearing up to meet the growing demand with both existing and up to 6 new players investing heavily to meet the demand.”

He said that the Indus Motor had invested over Rs 4 billion to debottleneck its production facility and increase its capacity by 20% i.e. up to 75,000 units annually by second quarter of 2018.

“This was very positive news for the economy as it would boost economic activity and create more jobs for our youth,” he said, adding: “We procure Rs 150 million worth of local parts everyday from our local vendors that amounts to Rs 40 billion annually, which is a proof of high level of indigenisation and local vendor development.”

He said that his company had enabled over 30 technical assistance agreement with global auto part makers, which had resulted in technology and knowledge transfer to Pakistan. “Huge investments are also being made in local vendor industry to cater to the growing demand coming from both existing and new OEMs and aftermarket as well.”

“Our flagship brand Corolla is ranked 23rd among 170 countries, with highest sales in Asia pacific and 4th highest sales in World. Locally produced Corolla is equipped with best class quality and safety features and has recently received the NCAP 4 star rating. With recent investments of $40 million in paint shop, our production capacity has reached 75,000 units annually,” he added.

He went on to say: “The IMC is the staunch promoter of ‘Make in Pakistan’, and we have a very strong commitment towards localisation. For Corolla, we have achieved 64% localisation.”

He said that customers were the center of every activity for the IMC. “We have been fighting against menace of premiums for a longtime. Our recent breakthrough initiative of cancelling multiple booking orders has helped counter premiums. Thousands of orders have been scrutinised for investors’ activity and numerous have been cancelled. We have been regularly running a customer education campaign against premium. We have gone an extra mile to fight this menace, now it is the government’s responsibility to take initiatives such as wholesale retail mechanism and increased transfer taxes to discourage premiums,” he added.

The IMC, he said, is a responsible corporate citizen and firmly believes in giving back to community. “We are the signatory of UNGC 10 Principles and works towards meeting the global goals for sustainable development. We are contributing heavily in the sectors of education, health, road safety and sustainable cities.”

Former PAAPAM chairman Aamir Allawala said new investments were on the horizon in automobile industry. “Most of the vendors are not only increasing capacities but are also upgrading technologies. Some new entrants have also announced investment plans. The addition of a European and two Korean brands will add variety to the car section and create healthy competition,” he added. “Optimistic macroeconomic indicators coupled with breakthrough projects like CPEC can help push Pakistan among the list of top 10 automobile manufacturers in the world. Given the incoming investment, Pakistan auto market is likely to cross 500,000 units mark.”

Published in Daily Times, March 18^th 2018.