Comments on: IMC Announces Rs 3.0 Billion Localization Initiative https://carspiritpk.com/imc-announces-rs-3-0-billion-localization-initiative/?utm_source=rss&utm_medium=rss&utm_campaign=imc-announces-rs-3-0-billion-localization-initiative Pakistan's Trusted Automobile Blog Sun, 25 Feb 2024 17:45:31 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: Uhmmm, "additional" localization https://carspiritpk.com/imc-announces-rs-3-0-billion-localization-initiative/#comment-16314 Sun, 25 Feb 2024 17:45:31 +0000 https://carspiritpk.com/?p=81277#comment-16314 So after 3 or 4 decades of getting protection from the government, only now have they actually begun the localization process, in marketing speak portraying it as “additional” localization, which is part of the “overall plan”.
This announcement hasn’t had an effect on the share price. https://dps.psx.com.pk/company/INDU

]]> By: Ali Khan https://carspiritpk.com/imc-announces-rs-3-0-billion-localization-initiative/#comment-16295 Fri, 23 Feb 2024 11:00:59 +0000 https://carspiritpk.com/?p=81277#comment-16295 Only time will tell.]]> There is something very alarming about the letter by IMC. They mention twice in the letter that they are looking to localize components for “various existing models”. Does that mean they will only concentrate on the old, outdated models already in the market or will they do the right thing and keep up their local component production to cater for advancements in models? As we know models on average change every 5 years globally. Will their local parts production keep up with that pace or will this be a case of “mehran-ifying” their vehicles. (get a decades old car and sell it just the same… for decades!).

3 billion PKR is around 10.7 million USD. That is not that much! Why did it take them so long to make this pittance of an investment that benefits ALL THEIR MODELS? Not only that, localization would bring in profits that will benefit the stakeholders and the bosses the most. Why were they averse for so long to this simple idea of expansion and localization? Why did they keep their own business down? And the alibi of “government tax/policy/corruption etc.” will not fly here. The old three have the most influence on auto policies in the nation. The government policy makers always take the easy way out and listen to their biased advise even if it is clearly not in the best interests of the nation.

But lets see what they make of it. Will they make a hash of it or will they make cash off it (and benefit the nation in the process). 😆 Only time will tell.

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