Karachi, 23 September: ‘Improving economic environment, driven by the government efforts provided much needed boost to the auto industry, IMC in particular posted healthy growth in FY 2014-15 and added Rs. 32bn in national exchequer which makes 1.2% of overall tax collection.’ This was stated by Chief Operating Officer IMC, Mr. Ali Jamali while talking to a group of journalists here on Wednesday.
Reduction in interest rates has increased car financing, positively impacting the sales of automobiles in the country, he added. Currently auto financing is contributing around 30% of vehicle sales, he added.
‘The agri and Taxi schemes are good initiatives of the government which also posed a good impact on the local auto industry sales. We are hopeful that other OEMs products such as IMC’s Hilux will also be included in such schemes.
‘The company mainly benefited from strong demand generated by the new 11th generation Toyota Corolla launched in July 2014 as the company outperformed and stayed well ahead of competition throughout the year clocking in 51,398 units,’ he added.
Jamali said that the company’s profits have increased due to the surge in demand of automobiles as additional 22,917 units were sold in the reported year.
It is to be noted that IMC has announced a net profit after tax of Rs 9.1 billion for Financial Year 2014-15 against the Rs 3.9 billion posted for previous fiscal.
He said that the combined sales of Toyota CKD and CBU vehicles set a new annual record of 57,387 units for the company, and the record sales volume achieved during the year resulted in a 32% market share for FY 2014-15.
COO IMC said in order to fulfil market demand and reduce delivery time cycle the company operated its manufacturing facilities at 100% capacity throughout the year undertaking overtime and working off Saturdays to minimize the impact of time lag on customers. We are making 220 Corollas everyday. Average delivery time is reduced from 3 to 4 months to 1.5 to 2 months.
Despite huge demand It has been 1.5 years, we haven’t increased the price of newly launched Corolla. In March 2014 Dollar was at 96 which is now at 104. We are absorbing this increase and not passing it on to consumer.
We have generated 500 employment opportunities at IMC only. The impact is 10 times more on allied industries and vendors.
We are anticipating that upcoming auto policy will be based on two principles, Long term vision and Made in Pakistan. These two factors will not only boost the economy but impact the economy by creating cycles of employment and contribution to GDP,’ he added.
‘It is a good omen that many international players are looking forward to enter Pakistani market and by formulating industry friendly policies, the government can soon put the country in the league of leading automakers in the world,’ Jamali said.
Government must realize that import policy is damaging local industry and hampering new investments. Huge number of imported used cars are the reason that no new investor is coming in general and in small cars segment in particular.