Auto industry to lead Pakistan’s economic revival

Karachi April 2, 2015 – Indus Motor announced that a major event was staged for the print and the electronic media today at its plant facilities in Port Qasim today. The occasion was part of company’s Silver Jubilee celebration and highlighted IMC’s commitment to actively engage important stakeholders on its contribution over the last 25 years and challenges facing the auto industry going forward.

Welcoming the guests, Mr. Ali S. Habib, Chairman Indus Motor said that automotive manufacturing is a high profile industry that generates enormous revenue, employs millions of people and is proxy for a nation’s manufacturing prowess and economic influence, and therefore regarded as the ‘Mother of all Industries’ due to the value chain it creates. In USA 5% of the employed population is involved in automotive and allied industries, while in Japan and South Korea about every 8th person is connected to this industry. Pakistan is set to become the 4th largest populated country by 2030 of 240 million and this presents a huge potential for growth of mobility in the country and equally the opportunity of providing employment and skilled jobs for the growing youth.

We are fortunate to have Toyota the #1 automaker globally to be our joint venture partner. Over the years this partnership has transformed Indus Motor to become a formidable player in the domestic auto industry creating thousands of jobs, enabling transfer of technology like pioneering robotics and high tech parts manufacturing and above all the human skills development through application of Toyota Production System and exposure of hundreds of our people to Toyota plants overseas.

From a humble beginning in 1989 with production capacity of 20 cars a day and a workforce of 500 employees, we have today grown into a company of over 2,700 employees and production capacity of 230 cars a day. Our daily sourcing of parts from local manufacturers exceeds Rs 110 million and the contribution to exchequer since inception exceeds Rs 224 billion.

Speaking on the occasion, the Chairman said that the automotive industry is one of the most documented sectors of the economy and amongst the highest taxpayers in the country. GOP must quickly firm up the new auto policy and decide how it wishes to pursue the mobilization growth i.e. through manufacturing or trading and look at the examples of neighboring countries like India, Thailand and Indonesia who have nurtured their industries until the threshold volumes were achieved to gain competitiveness. These countries have restrictions on import of used cars and have used tariff and non-tariff barriers to ensure domestic production is not damaged irretrievably. No auto manufacturing country permits liberal imports of used cars as Pakistan and here our government would do well to tighten this policy if the industry is to flourish.

With regards to quality, our vehicles like in the rest of the world are branded as ‘Made in Toyota’ and it means they are subject to the same rigorous quality standards as those manufactured by Toyota globally.

He said, despite years of challenges posed by the political and economic operating environment its impressive what the industry has achieved.

Data was presented showing that net of taxes the local Corolla is amongst the most competitively priced in the world. The Chairman emphasized that this competitiveness level has been achieved on account of the level of localization undertaken over all these years.

Over 60 leading journalists from across the country toured the manufacturing facilities and enjoyed hands on driving experience of Toyota Corolla, Hilux Vigo and Fortuner SUV vehicles on the purpose built test track and off road environment. Our businesses partners representing dealership and parts suppliers also graced the occasion.